Quantchabot has detected a promising Bull Call Spread trade opportunity for TARGA RESOURCES (TRGP) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TRGP was recently trading at $88.62 and has an implied volatility of 27.71% for this period. Based on an analysis of the options available for TRGP expiring on 20-Oct-2023, there is a 34.68% likelihood that the underlying will close within the analyzed range of $88.67-$91.19 at expiration. In this scenario, the average linear return for the trade would be 10.96%.
52 week high: TARGA RESOURCES recently reached a new 52-week high at $88.78. TRGP had traded in the range $64.80-$88.01 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 TRGP maintains its current direction and does not revert back to pricing on the bearish side of $88.62 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 TARGA RESOURCES closes at or above $88.40 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 54.43% 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.