52-Week High Alert: Trading today’s movement in EMCOR GROUP $EME

Quantchabot has detected a promising Bull Call Spread trade opportunity for EMCOR GROUP (EME) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EME was recently trading at $153.47 and has an implied volatility of 28.38% for this period. Based on an analysis of the options available for EME expiring on 17-Feb-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $155.22-$179.23 at expiration. In this scenario, the average linear return for the trade would be 11.16%.

52 week high: EMCOR GROUP recently reached a new 52-week high at $153.97. EME had traded in the range $95.64-$153.58 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 EME maintains its current direction and does not revert back to pricing on the bearish side of $153.47 on 17-Feb-2023. 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 EMCOR GROUP closes at or above $154.30 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 51.64% 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.