52-Week High Alert: Trading today’s movement in CANADIAN NATURAL $CNQ

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Quantchabot has detected a promising Bull Put Spread trade opportunity for CANADIAN NATURAL (CNQ) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CNQ was recently trading at $47.50 and has an implied volatility of 35.39% for this period. Based on an analysis of the options available for CNQ expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $47.50-$53.28 at expiration. In this scenario, the average linear return for the trade would be 59.78%.

52 week high: CANADIAN NATURAL recently reached a new 52-week high at $47.94. CNQ had traded in the range $22.40-$47.34 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 CNQ maintains its current direction and does not revert back to pricing on the bearish side of $47.50 on 18-Feb-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 CANADIAN NATURAL closes at or above $47.35 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 51.12% 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.