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Quantchabot has detected a promising Bull Call Spread trade opportunity for COWEN INC CLASS A (COWN) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
COWN was recently trading at $24.52 and has an implied volatility of 44.27% for this period. Based on an analysis of the options available for COWN expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $24.41-$29.83 at expiration. In this scenario, the average linear return for the trade would be 15.87%.
Big 7.29% Change: After closing the last trading session at $22.85, COWEN INC CLASS A opened today at $23.42 and has reached a high of $24.54.
Trade approach: A movement as big as 7.29% is a significantly bullish indicator, so this trade is designed to be profitable if COWN maintains its current direction and does not revert back to pricing on the bearish side of $24.52 on 15-Jul-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 COWEN INC CLASS A closes at or above $23.25 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 59.64% 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.