Quantchabot has detected a promising Bull Call Spread trade opportunity for GENERAL MILLS (GIS) for the 16-Dec-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GIS was recently trading at $82.48 and has an implied volatility of 19.64% for this period. Based on an analysis of the options available for GIS expiring on 16-Dec-2022, there is a 34.23% likelihood that the underlying will close within the analyzed range of $82.71-$87.05 at expiration. In this scenario, the average linear return for the trade would be 12.22%.
52 week high: GENERAL MILLS recently reached a new 52-week high at $82.86. GIS had traded in the range $61.41-$82.10 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 GIS maintains its current direction and does not revert back to pricing on the bearish side of $82.48 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 GENERAL MILLS closes at or above $82.20 on 16-Dec-2022. Based on our risk-neutral analysis, there is a 54.79% 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.