Big Gainer Alert: Trading today’s 7.5% move in DENBURY INC $DEN

Quantcha now offering unlimited commission-free options trading.

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

DEN was recently trading at $71.94 and has an implied volatility of 52.13% for this period. Based on an analysis of the options available for DEN expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $71.95-$83.61 at expiration. In this scenario, the average linear return for the trade would be 62.19%.

Big 7.45% Change: After closing the last trading session at $66.95, DENBURY INC opened today at $68.70 and has reached a high of $72.00.

Trade approach: A movement as big as 7.45% is a significantly bullish indicator, so this trade is designed to be profitable if DEN maintains its current direction and does not revert back to pricing on the bearish side of $71.94 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 DENBURY INC closes at or above $70.85 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 54.07% 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.

Leave a Reply