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Quantchabot has detected a promising Bull Call Spread trade opportunity for CENOVUS ENERGY (CVE) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CVE was recently trading at $20.41 and has an implied volatility of 57.28% for this period. Based on an analysis of the options available for CVE expiring on 17-Jun-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $20.34-$24.15 at expiration. In this scenario, the average linear return for the trade would be 10.20%.
52 week high: CENOVUS ENERGY recently reached a new 52-week high at $20.80. CVE had traded in the range $7.20-$20.47 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 CVE maintains its current direction and does not revert back to pricing on the bearish side of $20.41 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 CENOVUS ENERGY closes at or above $20.15 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 52.21% 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.