Quantchabot has detected a promising Bull Call Spread trade opportunity for EATON PUBLIC (ETN) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ETN was recently trading at $225.72 and has an implied volatility of 21.74% for this period. Based on an analysis of the options available for ETN expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $227.63-$247.43 at expiration. In this scenario, the average linear return for the trade would be 10.24%.
52 week high: EATON PUBLIC recently reached a new 52-week high at $226.21. ETN had traded in the range $129.85-$225.76 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 ETN maintains its current direction and does not revert back to pricing on the bearish side of $225.72 on 20-Oct-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 EATON PUBLIC closes at or above $225.80 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.84% 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.