52-Week High Alert: Trading today’s movement in PIONEER NATURAL RESOURCES $PXD

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Call Spread trade opportunity for PIONEER NATURAL RESOURCES (PXD) for the 5-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PXD was recently trading at $195.32 and has an implied volatility of 40.76% for this period. Based on an analysis of the options available for PXD expiring on 5-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $195.33-$217.47 at expiration. In this scenario, the average linear return for the trade would be 49.72%.

52 week high: PIONEER NATURAL RESOURCES recently reached a new 52-week high at $196.64. PXD had traded in the range $76.58-$184.87 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 PXD maintains its current direction and does not revert back to pricing on the bearish side of $195.32 on 5-Nov-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 PIONEER NATURAL RESOURCES closes at or above $194.60 on 5-Nov-2021. Based on our risk-neutral analysis, there is a 51.39% 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.