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Quantchabot has detected a promising Bull Call Spread trade opportunity for COTERRA ENERGY INC (CTRA) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CTRA was recently trading at $31.02 and has an implied volatility of 50.82% for this period. Based on an analysis of the options available for CTRA expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $30.44-$38.19 at expiration. In this scenario, the average linear return for the trade would be 12.14%.
52 week high: COTERRA ENERGY INC recently reached a new 52-week high at $32.79. CTRA had traded in the range $14.28-$31.42 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 CTRA maintains its current direction and does not revert back to pricing on the bearish side of $31.02 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 COTERRA ENERGY INC closes at or above $28.70 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 60.28% 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.