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Quantchabot has detected a promising Bull Call Spread trade opportunity for AGNC INVESTMENT CORP (AGNC) for the 23-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AGNC was recently trading at $17.11 and has an implied volatility of 13.83% for this period. Based on an analysis of the options available for AGNC expiring on 23-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $17.11-$17.60 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
52 week high: AGNC INVESTMENT CORP recently reached a new 52-week high at $17.15. AGNC had traded in the range $10.47-$17.09 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 AGNC maintains its current direction and does not revert back to pricing on the bearish side of $17.11 on 23-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 AGNC INVESTMENT CORP closes at or above $16.95 on 23-Apr-2021. Based on our risk-neutral analysis, there is a 62.78% 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.