Big Gainer Alert: Trading today’s 8.0% move in DIAMONDBACK ENERGY INC $FANG

Quantchabot has detected a promising Bull Call Spread trade opportunity for DIAMONDBACK ENERGY INC (FANG) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FANG was recently trading at $132.05 and has an implied volatility of 58.55% for this period. Based on an analysis of the options available for FANG expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $132.15-$153.85 at expiration. In this scenario, the average linear return for the trade would be 10.62%.

Big 7.98% Change: After closing the last trading session at $122.29, DIAMONDBACK ENERGY INC opened today at $127.25 and has reached a high of $132.18.

Trade approach: A movement as big as 7.98% is a significantly bullish indicator, so this trade is designed to be profitable if FANG maintains its current direction and does not revert back to pricing on the bearish side of $132.05 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 DIAMONDBACK ENERGY INC closes at or above $127.35 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 59.66% 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.