Quantchabot has detected a promising Bull Call Spread trade opportunity for HARTFORD FINANCIAL (HIG) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HIG was recently trading at $75.82 and has an implied volatility of 22.32% for this period. Based on an analysis of the options available for HIG expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $75.88-$82.87 at expiration. In this scenario, the average linear return for the trade would be 11.09%.
52 week high: HARTFORD FINANCIAL recently reached a new 52-week high at $76.09. HIG had traded in the range $60.16-$76.00 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 HIG maintains its current direction and does not revert back to pricing on the bearish side of $75.82 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 HARTFORD FINANCIAL closes at or above $75.25 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 53.79% 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.