Quantchabot has detected a promising Bull Call Spread trade opportunity for AIR PRODUCTS & CHEMICALS (APD) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APD was recently trading at $309.35 and has an implied volatility of 23.55% for this period. Based on an analysis of the options available for APD expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $309.74-$340.44 at expiration. In this scenario, the average linear return for the trade would be 10.39%.
52 week high: AIR PRODUCTS & CHEMICALS recently reached a new 52-week high at $310.38. APD had traded in the range $216.24-$309.29 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 APD maintains its current direction and does not revert back to pricing on the bearish side of $309.35 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 AIR PRODUCTS & CHEMICALS closes at or above $308.95 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 51.07% 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.