Quantchabot has detected a promising Bull Call Spread trade opportunity for ALCON INC (ALC) for the 16-Dec-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ALC was recently trading at $68.11 and has an implied volatility of 30.30% for this period. Based on an analysis of the options available for ALC expiring on 16-Dec-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $68.34-$74.62 at expiration. In this scenario, the average linear return for the trade would be 25.00%.
Big 7.49% Change: After closing the last trading session at $63.37, ALCON INC opened today at $68.24 and has reached a high of $68.80.
Trade approach: A movement as big as 7.49% is a significantly bullish indicator, so this trade is designed to be profitable if ALC maintains its current direction and does not revert back to pricing on the bearish side of $68.11 on 16-Dec-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 ALCON INC closes at or above $67.00 on 16-Dec-2022. Based on our risk-neutral analysis, there is a 58.90% 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.