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Quantchabot has detected a promising Bull Call Spread trade opportunity for CITIGROUP (C) for the 2-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
C was recently trading at $77.07 and has an implied volatility of 28.51% for this period. Based on an analysis of the options available for C expiring on 2-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $77.08-$85.32 at expiration. In this scenario, the average linear return for the trade would be 67.18%.
52 week high: CITIGROUP recently reached a new 52-week high at $77.13. C had traded in the range $38.76-$76.84 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if C maintains its current direction and does not revert back to pricing on the bearish side of $77.07 on 2-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 CITIGROUP closes at or above $77.00 on 2-Jul-2021. Based on our risk-neutral analysis, there is a 50.41% 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.