Big Gainer Alert: Trading today’s 7.4% move in HSBC HOLDINGS $HSBC

Quantchabot has detected a promising Bull Call Spread trade opportunity for HSBC HOLDINGS (HSBC) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HSBC was recently trading at $33.27 and has an implied volatility of 39.51% for this period. Based on an analysis of the options available for HSBC expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $33.32-$37.89 at expiration. In this scenario, the average linear return for the trade would be 14.10%.

Big 7.44% Change: After closing the last trading session at $30.97, HSBC HOLDINGS opened today at $33.29 and has reached a high of $33.30.

Trade approach: A movement as big as 7.44% is a significantly bullish indicator, so this trade is designed to be profitable if HSBC maintains its current direction and does not revert back to pricing on the bearish side of $33.27 on 29-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 HSBC HOLDINGS closes at or above $33.20 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 51.08% 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.