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Quantchabot has detected a promising Bull Call Spread trade opportunity for DEVON ENERGY (DVN) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DVN was recently trading at $25.36 and has an implied volatility of 48.51% for this period. Based on an analysis of the options available for DVN expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $25.25-$31.34 at expiration. In this scenario, the average linear return for the trade would be 84.36%.
Big 8.12% Change: After closing the last trading session at $23.45, DEVON ENERGY opened today at $24.04 and has reached a high of $25.64.
Trade approach: A movement as big as 8.12% is a significantly bullish indicator, so this trade is designed to be profitable if DVN maintains its current direction and does not revert back to pricing on the bearish side of $25.36 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 DEVON ENERGY closes at or above $25.05 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 51.47% 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.