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Quantchabot has detected a promising Bull Call Spread trade opportunity for HESS (HES) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HES was recently trading at $92.11 and has an implied volatility of 39.02% for this period. Based on an analysis of the options available for HES expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $92.11-$97.67 at expiration. In this scenario, the average linear return for the trade would be 73.52%.
52 week high: HESS recently reached a new 52-week high at $93.37. HES had traded in the range $53.43-$92.79 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 HES maintains its current direction and does not revert back to pricing on the bearish side of $92.11 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 HESS closes at or above $92.10 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.04% 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.