52-Week High Alert: Trading today’s movement in SUNCOR ENERGY $SU

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Put Spread trade opportunity for SUNCOR ENERGY (SU) for the 2-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SU was recently trading at $23.96 and has an implied volatility of 39.23% for this period. Based on an analysis of the options available for SU expiring on 2-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $23.76-$27.28 at expiration. In this scenario, the average linear return for the trade would be 58.28%.

52 week high: SUNCOR ENERGY recently reached a new 52-week high at $24.34. SU had traded in the range $10.67-$24.12 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 SU maintains its current direction and does not revert back to pricing on the bearish side of $23.96 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 SUNCOR ENERGY closes at or above $23.70 on 2-Jul-2021. Based on our risk-neutral analysis, there is a 50.69% 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.