Quantchabot has detected a new Bull Call Spread trade opportunity for CME GROUP (CME) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CME was recently trading at $263.54 and has an implied volatility of 19.94% for this period. Based on an analysis of the options available for CME expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $264.56-$280.57 at expiration. In this scenario, the average linear return for the trade would be 10.79%.
52 week high: CME GROUP recently reached a new 52-week high at $264.20. CME had traded in the range $190.70-$263.65 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 CME maintains its current direction and does not revert back to pricing on the bearish side of $263.54 on 17-Apr-2025. 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 CME GROUP closes at or above $262.20 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 56.06% 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.
Leave a Reply
You must be logged in to post a comment.