52-Week High Alert: Trading today’s movement in ONEOK $OKE

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

OKE was recently trading at $54.66 and has an implied volatility of 32.02% for this period. Based on an analysis of the options available for OKE expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $54.67-$62.20 at expiration. In this scenario, the average linear return for the trade would be 65.92%.

52 week high: ONEOK recently reached a new 52-week high at $55.10. OKE had traded in the range $23.28-$54.78 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 OKE maintains its current direction and does not revert back to pricing on the bearish side of $54.66 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 ONEOK closes at or above $54.00 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 53.80% 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.