Quantchabot has detected a promising Bull Call Spread trade opportunity for HUBBELL CORP (HUBB) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HUBB was recently trading at $228.21 and has an implied volatility of 27.62% for this period. Based on an analysis of the options available for HUBB expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $228.71-$247.76 at expiration. In this scenario, the average linear return for the trade would be 16.47%.
52 week high: HUBBELL CORP recently reached a new 52-week high at $232.47. HUBB had traded in the range $170.21-$227.58 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 HUBB maintains its current direction and does not revert back to pricing on the bearish side of $228.21 on 21-Oct-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 HUBBELL CORP closes at or above $225.00 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 58.11% 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.