Quantchabot has detected a promising Bull Call Spread trade opportunity for HALLIBURTON (HAL) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HAL was recently trading at $33.98 and has an implied volatility of 54.96% for this period. Based on an analysis of the options available for HAL expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $34.01-$39.23 at expiration. In this scenario, the average linear return for the trade would be 10.72%.
Big 7.23% Change: After closing the last trading session at $31.69, HALLIBURTON opened today at $32.71 and has reached a high of $34.01.
Trade approach: A movement as big as 7.23% is a significantly bullish indicator, so this trade is designed to be profitable if HAL maintains its current direction and does not revert back to pricing on the bearish side of $33.98 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 HALLIBURTON closes at or above $32.16 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 65.24% 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.