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Quantchabot has detected a promising Bull Call Spread trade opportunity for EDISON INTERNATIONAL (EIX) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EIX was recently trading at $65.49 and has an implied volatility of 18.15% for this period. Based on an analysis of the options available for EIX expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $65.50-$70.43 at expiration. In this scenario, the average linear return for the trade would be 32.25%.
52 week high: EDISON INTERNATIONAL recently reached a new 52-week high at $66.11. EIX had traded in the range $53.92-$65.74 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 EIX maintains its current direction and does not revert back to pricing on the bearish side of $65.49 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 EDISON INTERNATIONAL closes at or above $65.30 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 51.68% 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.