Big Gainer Alert: Trading today’s 7.5% move in CLEARFIELD $CLFD

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Quantchabot has detected a promising Bull Put Spread trade opportunity for CLEARFIELD (CLFD) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CLFD was recently trading at $39.47 and has an implied volatility of 47.09% for this period. Based on an analysis of the options available for CLFD expiring on 18-Jun-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $39.48-$47.26 at expiration. In this scenario, the average linear return for the trade would be 44.18%.

Big 7.46% Change: After closing the last trading session at $36.73, CLEARFIELD opened today at $36.75 and has reached a high of $39.90.

Trade approach: A movement as big as 7.46% is a significantly bullish indicator, so this trade is designed to be profitable if CLFD maintains its current direction and does not revert back to pricing on the bearish side of $39.47 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 CLEARFIELD closes at or above $38.45 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 55.82% 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.