Quantchabot has detected a promising Bull Call Spread trade opportunity for SYNCHRONY FINANCIAL (SYF) for the 31-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SYF was recently trading at $31.30 and has an implied volatility of 61.78% for this period. Based on an analysis of the options available for SYF expiring on 31-Mar-2023, there is a 34.25% likelihood that the underlying will close within the analyzed range of $31.37-$35.94 at expiration. In this scenario, the average linear return for the trade would be 11.10%.
Big 7.01% Change: After closing the last trading session at $29.25, SYNCHRONY FINANCIAL opened today at $30.74 and has reached a high of $31.44.
Trade approach: A movement as big as 7.01% is a significantly bullish indicator, so this trade is designed to be profitable if SYF maintains its current direction and does not revert back to pricing on the bearish side of $31.30 on 31-Mar-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 SYNCHRONY FINANCIAL closes at or above $30.85 on 31-Mar-2023. Based on our risk-neutral analysis, there is a 54.93% 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.
Leave a Reply
You must be logged in to post a comment.