Quantchabot has detected a promising Bull Call Spread trade opportunity for TRANE TECHNOLOGIES PLC (TT) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TT was recently trading at $211.09 and has an implied volatility of 19.21% for this period. Based on an analysis of the options available for TT expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $212.37-$226.08 at expiration. In this scenario, the average linear return for the trade would be 10.76%.
52 week high: TRANE TECHNOLOGIES PLC recently reached a new 52-week high at $211.58. TT had traded in the range $139.07-$209.17 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 TT maintains its current direction and does not revert back to pricing on the bearish side of $211.09 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 TRANE TECHNOLOGIES PLC closes at or above $211.00 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 54.11% 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.