Quantchabot has detected a promising Bull Call Spread trade opportunity for TRUIST FINANCIAL CORP (TFC) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TFC was recently trading at $34.67 and has an implied volatility of 105.34% for this period. Based on an analysis of the options available for TFC expiring on 17-Mar-2023, there is a 34.70% likelihood that the underlying will close within the analyzed range of $34.69-$38.57 at expiration. In this scenario, the average linear return for the trade would be 11.42%.
Big 7.54% Change: After closing the last trading session at $32.24, TRUIST FINANCIAL CORP opened today at $35.40 and has reached a high of $36.19.
Trade approach: A movement as big as 7.54% is a significantly bullish indicator, so this trade is designed to be profitable if TFC maintains its current direction and does not revert back to pricing on the bearish side of $34.67 on 17-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 TRUIST FINANCIAL CORP closes at or above $34.65 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 50.39% 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.
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