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Quantchabot has detected a promising Bull Call Spread trade opportunity for JINKOSOLAR HOLDING (JKS) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JKS was recently trading at $45.13 and has an implied volatility of 65.75% for this period. Based on an analysis of the options available for JKS expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $45.14-$49.52 at expiration. In this scenario, the average linear return for the trade would be 81.38%.
Big 9.52% Change: After closing the last trading session at $41.21, JINKOSOLAR HOLDING opened today at $42.02 and has reached a high of $45.22.
Trade approach: A movement as big as 9.52% is a significantly bullish indicator, so this trade is designed to be profitable if JKS maintains its current direction and does not revert back to pricing on the bearish side of $45.13 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 JINKOSOLAR HOLDING closes at or above $44.94 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 51.87% 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.