Quantchabot has detected a promising Covered Call trade opportunity for ECOPETROL (EC) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EC was recently trading at $12.34 and has an implied volatility of 26.24% for this period. Based on an analysis of the options available for EC expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $11.58-$12.61 at expiration. In this scenario, the average linear return for the trade would be 16.84%.
52 week high: ECOPETROL recently reached a new 52-week high at $12.38. EC had traded in the range $8.59-$12.35 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 EC maintains its current direction and does not revert back to pricing on the bearish side of $12.34 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 the underlying closes within the analyzed range on 20-Oct-2023.
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.