Big Gainer Alert: Trading today’s 7.4% move in APA CORP $APA

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

APA was recently trading at $31.61 and has an implied volatility of 53.70% for this period. Based on an analysis of the options available for APA expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $31.48-$37.46 at expiration. In this scenario, the average linear return for the trade would be 75.34%.

Big 7.44% Change: After closing the last trading session at $29.42, APA CORP opened today at $29.76 and has reached a high of $31.96.

Trade approach: A movement as big as 7.44% is a significantly bullish indicator, so this trade is designed to be profitable if APA maintains its current direction and does not revert back to pricing on the bearish side of $31.61 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 APA CORP closes at or above $31.36 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.89% 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.