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Quantchabot has detected a promising Bull Call Spread trade opportunity for ORACLE CORP (ORCL) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ORCL was recently trading at $73.75 and has an implied volatility of 23.62% for this period. Based on an analysis of the options available for ORCL expiring on 18-Jun-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $73.45-$81.71 at expiration. In this scenario, the average linear return for the trade would be 68.87%.
52 week high: ORACLE CORP recently reached a new 52-week high at $73.80. ORCL had traded in the range $48.10-$73.62 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if ORCL maintains its current direction and does not revert back to pricing on the bearish side of $73.75 on 18-Jun-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 ORACLE CORP closes at or above $72.85 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 53.05% 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.