52-Week High Alert: Trading today’s movement in NORTHROP GRUMMAN $NOC

Quantchabot has detected a promising Bull Call Spread trade opportunity for NORTHROP GRUMMAN (NOC) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NOC was recently trading at $512.68 and has an implied volatility of 29.04% for this period. Based on an analysis of the options available for NOC expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $513.80-$558.97 at expiration. In this scenario, the average linear return for the trade would be 10.22%.

52 week high: NORTHROP GRUMMAN recently reached a new 52-week high at $513.04. NOC had traded in the range $344.89-$497.20 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 NOC maintains its current direction and does not revert back to pricing on the bearish side of $512.68 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 NORTHROP GRUMMAN closes at or above $513.31 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 50.46% 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.