Big Gainer Alert: Trading today’s 8.8% move in ENERGY TRANSFER LP $ET

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Quantchabot has detected a promising Bull Call Spread trade opportunity for ENERGY TRANSFER LP (ET) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ET was recently trading at $7.62 and has an implied volatility of 57.01% for this period. Based on an analysis of the options available for ET expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.62-$9.47 at expiration. In this scenario, the average linear return for the trade would be 93.30%.

Big 8.79% Change: After closing the last trading session at $7.00, ENERGY TRANSFER LP opened today at $7.03 and has reached a high of $7.66.

Trade approach: A movement as big as 8.79% is a significantly bullish indicator, so this trade is designed to be profitable if ET maintains its current direction and does not revert back to pricing on the bearish side of $7.62 on 16-Apr-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if ENERGY TRANSFER LP closes at or above $7.49 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 53.06% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.