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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 $37.73 and has an implied volatility of 69.62% 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 $37.76-$51.63 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
Big 7.31% Change: After closing the last trading session at $35.16, ANTERO RESOURCES CORP opened today at $35.52 and has reached a high of $38.25.
Trade approach: A movement as big as 7.31% is a significantly 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 $37.73 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 $31.20 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 72.94% 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.