Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for BRIGHTSPHERE INVESTMENT GROUP INC (BSIG) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BSIG was recently trading at $22.10 and has an implied volatility of 48.03% for this period. Based on an analysis of the options available for BSIG expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $22.10-$23.76 at expiration. In this scenario, the average linear return for the trade would be 25.13%.
Big 8.49% Change: After closing the last trading session at $20.37, BRIGHTSPHERE INVESTMENT GROUP INC opened today at $21.52 and has reached a high of $22.17.
Trade approach: A movement as big as 8.49% is a significantly bullish indicator, so this trade is designed to be profitable if BSIG maintains its current direction and does not revert back to pricing on the bearish side of $22.10 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 BRIGHTSPHERE INVESTMENT GROUP INC closes at or above $21.95 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 53.77% 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.