Big Gainer Alert: Trading today’s 7.3% move in BAKER HUGHES CO $BKR

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Quantchabot has detected a promising Bull Call Spread trade opportunity for BAKER HUGHES CO (BKR) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BKR was recently trading at $21.55 and has an implied volatility of 37.91% for this period. Based on an analysis of the options available for BKR expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $21.55-$25.58 at expiration. In this scenario, the average linear return for the trade would be 78.13%.

Big 7.32% Change: After closing the last trading session at $20.08, BAKER HUGHES CO opened today at $20.58 and has reached a high of $21.57.

Trade approach: A movement as big as 7.32% is a significantly bullish indicator, so this trade is designed to be profitable if BKR maintains its current direction and does not revert back to pricing on the bearish side of $21.55 on 16-Jul-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 BAKER HUGHES CO closes at or above $21.50 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 50.59% 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.