Quantchabot has detected a promising Bull Call Spread trade opportunity for PBF ENERGY (PBF) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PBF was recently trading at $32.05 and has an implied volatility of 72.20% for this period. Based on an analysis of the options available for PBF expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $32.12-$39.46 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
Big 8.28% Change: After closing the last trading session at $29.60, PBF ENERGY opened today at $30.50 and has reached a high of $32.08.
Trade approach: A movement as big as 8.28% is a significantly bullish indicator, so this trade is designed to be profitable if PBF maintains its current direction and does not revert back to pricing on the bearish side of $32.05 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 PBF ENERGY closes at or above $28.90 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 69.65% 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.