Quantchabot has detected a promising Bull Call Spread trade opportunity for CLEAN ENERGY FUELS (CLNE) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CLNE was recently trading at $4.88 and has an implied volatility of 52.46% for this period. Based on an analysis of the options available for CLNE expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $4.91-$5.83 at expiration. In this scenario, the average linear return for the trade would be 10.86%.
Big 10.80% Change: After closing the last trading session at $4.40, CLEAN ENERGY FUELS opened today at $4.46 and has reached a high of $4.92.
Trade approach: A movement as big as 10.80% is a significantly bullish indicator, so this trade is designed to be profitable if CLNE maintains its current direction and does not revert back to pricing on the bearish side of $4.88 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 CLEAN ENERGY FUELS closes at or above $4.70 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 59.77% 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.