52-Week High Alert: Trading today’s movement in ALCON INC $ALC

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Call Spread trade opportunity for ALCON INC (ALC) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ALC was recently trading at $85.37 and has an implied volatility of 18.59% for this period. Based on an analysis of the options available for ALC expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $85.38-$90.16 at expiration. In this scenario, the average linear return for the trade would be 35.14%.

52 week high: ALCON INC recently reached a new 52-week high at $85.98. ALC had traded in the range $55.76-$85.53 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 ALC maintains its current direction and does not revert back to pricing on the bearish side of $85.37 on 15-Oct-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 ALCON INC closes at or above $84.35 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 58.78% 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.