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Quantchabot has detected a promising Bull Call Spread trade opportunity for ANTERO RESOURCES CORP (AR) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AR was recently trading at $37.41 and has an implied volatility of 69.84% for this period. Based on an analysis of the options available for AR expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $37.44-$51.25 at expiration. In this scenario, the average linear return for the trade would be 10.39%.
52 week high: ANTERO RESOURCES CORP recently reached a new 52-week high at $37.49. AR had traded in the range $9.04-$37.34 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 AR maintains its current direction and does not revert back to pricing on the bearish side of $37.41 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 ANTERO RESOURCES CORP closes at or above $30.40 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 74.68% 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.