Big Gainer Alert: Trading today’s 9.9% move in DIAMOND OFFSHORE DRILLING INC $DO

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

DO was recently trading at $15.30 and has an implied volatility of 27.79% for this period. Based on an analysis of the options available for DO expiring on 19-Jul-2024, there is a 34.18% likelihood that the underlying will close within the analyzed range of $15.40-$16.88 at expiration. In this scenario, the average linear return for the trade would be 11.62%.

Big 9.87% Change: After closing the last trading session at $13.93, DIAMOND OFFSHORE DRILLING INC opened today at $15.16 and has reached a high of $15.40.

Trade approach: A movement as big as 9.87% is a significantly bullish indicator, so this trade is designed to be profitable if DO maintains its current direction and does not revert back to pricing on the bearish side of $15.30 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 DIAMOND OFFSHORE DRILLING INC closes at or above $15.35 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 51.38% 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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