Big Gainer Alert: Trading today’s 7.2% move in POWELL INDUSTRIES $POWL

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

POWL was recently trading at $170.53 and has an implied volatility of 52.83% for this period. Based on an analysis of the options available for POWL expiring on 19-Jul-2024, there is a 34.18% likelihood that the underlying will close within the analyzed range of $171.58-$204.23 at expiration. In this scenario, the average linear return for the trade would be 13.47%.

Big 7.23% Change: After closing the last trading session at $159.03, POWELL INDUSTRIES opened today at $159.00 and has reached a high of $170.96.

Trade approach: A movement as big as 7.23% is a significantly bullish indicator, so this trade is designed to be profitable if POWL maintains its current direction and does not revert back to pricing on the bearish side of $170.53 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 POWELL INDUSTRIES closes at or above $164.10 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 60.11% 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.


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