52-Week High Alert: Trading today’s movement in EASTMAN CHEMICAL $EMN

Quantchabot has detected a new Bull Call Spread trade opportunity for EASTMAN CHEMICAL (EMN) for the 19-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EMN was recently trading at $103.38 and has an implied volatility of 20.31% for this period. Based on an analysis of the options available for EMN expiring on 19-Jul-2024, there is a 34.18% likelihood that the underlying will close within the analyzed range of $103.20-$110.34 at expiration. In this scenario, the average linear return for the trade would be 16.73%.

52 week high: EASTMAN CHEMICAL recently reached a new 52-week high at $103.61. EMN had traded in the range $68.89-$102.71 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 EMN maintains its current direction and does not revert back to pricing on the bearish side of $103.38 on 19-Jul-2024. 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 EASTMAN CHEMICAL closes at or above $101.90 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 57.50% 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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