Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for ENERGY TRANSFER LP (ET) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ET was recently trading at $11.96 and has an implied volatility of 36.67% for this period. Based on an analysis of the options available for ET expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $11.78-$13.85 at expiration. In this scenario, the average linear return for the trade would be 11.24%.
52 week high: ENERGY TRANSFER LP recently reached a new 52-week high at $12.48. ET had traded in the range $7.96-$12.08 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 ET maintains its current direction and does not revert back to pricing on the bearish side of $11.96 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 ENERGY TRANSFER LP closes at or above $11.70 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 51.59% 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.