52-Week High Alert: Trading today’s movement in EMERSON ELECTRIC $EMR

Quantchabot has detected a promising Bull Call Spread trade opportunity for EMERSON ELECTRIC (EMR) for the 27-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EMR was recently trading at $99.60 and has an implied volatility of 16.76% for this period. Based on an analysis of the options available for EMR expiring on 27-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $100.33-$106.52 at expiration. In this scenario, the average linear return for the trade would be 10.24%.

52 week high: EMERSON ELECTRIC recently reached a new 52-week high at $99.67. EMR had traded in the range $72.41-$99.65 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 EMR maintains its current direction and does not revert back to pricing on the bearish side of $99.60 on 27-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 EMERSON ELECTRIC closes at or above $99.80 on 27-Oct-2023. Based on our risk-neutral analysis, there is a 53.48% 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