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Quantchabot has detected a promising Bull Call Spread trade opportunity for SUNCOKE ENERGY (SXC) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SXC was recently trading at $7.34 and has an implied volatility of 57.41% for this period. Based on an analysis of the options available for SXC expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.28-$8.93 at expiration. In this scenario, the average linear return for the trade would be 20.98%.
Big 8.74% Change: After closing the last trading session at $6.75, SUNCOKE ENERGY opened today at $6.92 and has reached a high of $7.35.
Trade approach: A movement as big as 8.74% is a significantly bullish indicator, so this trade is designed to be profitable if SXC maintains its current direction and does not revert back to pricing on the bearish side of $7.34 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 SUNCOKE ENERGY closes at or above $7.05 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 56.26% 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.