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Quantchabot has detected a promising Bull Call Spread trade opportunity for ZIM INTEGRATED SHIPPING SERVICES LTD (ZIM) for the 13-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ZIM was recently trading at $62.38 and has an implied volatility of 62.61% for this period. Based on an analysis of the options available for ZIM expiring on 13-May-2022, there is a 34.33% likelihood that the underlying will close within the analyzed range of $62.39-$69.44 at expiration. In this scenario, the average linear return for the trade would be 10.98%.
Big 8.59% Change: After closing the last trading session at $57.45, ZIM INTEGRATED SHIPPING SERVICES LTD opened today at $57.50 and has reached a high of $62.65.
Trade approach: A movement as big as 8.59% is a significantly bullish indicator, so this trade is designed to be profitable if ZIM maintains its current direction and does not revert back to pricing on the bearish side of $62.38 on 13-May-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 ZIM INTEGRATED SHIPPING SERVICES LTD closes at or above $61.50 on 13-May-2022. Based on our risk-neutral analysis, there is a 55.40% 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.