52-Week High Alert: Trading today’s movement in MARATHON OIL $MRO

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Quantchabot has detected a promising Bull Put Spread trade opportunity for MARATHON OIL (MRO) for the 11-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MRO was recently trading at $19.10 and has an implied volatility of 46.07% for this period. Based on an analysis of the options available for MRO expiring on 11-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $19.10-$21.71 at expiration. In this scenario, the average linear return for the trade would be 68.88%.

52 week high: MARATHON OIL recently reached a new 52-week high at $19.35. MRO had traded in the range $7.20-$18.98 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 MRO maintains its current direction and does not revert back to pricing on the bearish side of $19.10 on 11-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 MARATHON OIL closes at or above $19.07 on 11-Feb-2022. Based on our risk-neutral analysis, there is a 50.50% 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.