Quantchabot has detected a promising Bull Call Spread trade opportunity for PHILLIPS 66 (PSX) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PSX was recently trading at $121.67 and has an implied volatility of 24.02% for this period. Based on an analysis of the options available for PSX expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $122.42-$132.51 at expiration. In this scenario, the average linear return for the trade would be 11.05%.
52 week high: PHILLIPS 66 recently reached a new 52-week high at $124.06. PSX had traded in the range $74.02-$118.99 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 PSX maintains its current direction and does not revert back to pricing on the bearish side of $121.67 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 PHILLIPS 66 closes at or above $121.15 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 55.24% 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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