52-Week High Alert: Trading today’s movement in GLOBE LIFE INC $GL

Quantchabot has detected a promising Long Risk Reversal trade opportunity for GLOBE LIFE INC (GL) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GL was recently trading at $116.67 and has an implied volatility of 21.83% for this period. Based on an analysis of the options available for GL expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $117.45-$128.29 at expiration. In this scenario, the average linear return for the trade would be 11.83%.

52 week high: GLOBE LIFE INC recently reached a new 52-week high at $117.31. GL had traded in the range $85.25-$116.56 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 GL maintains its current direction and does not revert back to pricing on the bearish side of $116.67 on 20-Jan-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 GLOBE LIFE INC closes at or above $116.75 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 52.68% 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.