Big Gainer Alert: Trading today’s 7.1% move in SERVICE CORPORATION $SCI

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Quantchabot has detected a promising Bull Call Spread trade opportunity for SERVICE CORPORATION (SCI) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SCI was recently trading at $68.96 and has an implied volatility of 29.87% for this period. Based on an analysis of the options available for SCI expiring on 17-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $69.00-$76.61 at expiration. In this scenario, the average linear return for the trade would be 16.64%.

Big 7.11% Change: After closing the last trading session at $64.38, SERVICE CORPORATION opened today at $66.00 and has reached a high of $69.82.

Trade approach: A movement as big as 7.11% is a significantly bullish indicator, so this trade is designed to be profitable if SCI maintains its current direction and does not revert back to pricing on the bearish side of $68.96 on 17-Jun-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 SERVICE CORPORATION closes at or above $68.50 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 52.78% 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.