Big Gainer Alert: Trading today’s 13.3% move in SOCIEDAD QUIMICA Y MINERA $SQM

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Quantchabot has detected a promising Bull Call Spread trade opportunity for SOCIEDAD QUIMICA Y MINERA (SQM) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SQM was recently trading at $71.00 and has an implied volatility of 49.98% for this period. Based on an analysis of the options available for SQM expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $71.01-$87.01 at expiration. In this scenario, the average linear return for the trade would be 42.10%.

Big 13.29% Change: After closing the last trading session at $62.67, SOCIEDAD QUIMICA Y MINERA opened today at $70.00 and has reached a high of $71.50.

Trade approach: A movement as big as 13.29% is a significantly bullish indicator, so this trade is designed to be profitable if SQM maintains its current direction and does not revert back to pricing on the bearish side of $71.00 on 21-Jan-2022. 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 SOCIEDAD QUIMICA Y MINERA closes at or above $70.10 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 52.53% 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.