Quantchabot has detected a promising Bull Call Spread trade opportunity for CRESTWOOD EQUITY PARTNERS LP (CEQP) for the 21-Jul-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CEQP was recently trading at $24.65 and has an implied volatility of 23.62% for this period. Based on an analysis of the options available for CEQP expiring on 21-Jul-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $24.92-$27.59 at expiration. In this scenario, the average linear return for the trade would be 11.34%.
Big 7.03% Change: After closing the last trading session at $23.03, CRESTWOOD EQUITY PARTNERS LP opened today at $23.15 and has reached a high of $24.72.
Trade approach: A movement as big as 7.03% is a significantly bullish indicator, so this trade is designed to be profitable if CEQP maintains its current direction and does not revert back to pricing on the bearish side of $24.65 on 21-Jul-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 CRESTWOOD EQUITY PARTNERS LP closes at or above $24.75 on 21-Jul-2023. Based on our risk-neutral analysis, there is a 52.74% 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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