Quantchabot has detected a new Bull Call Spread trade opportunity for BAYTEX ENERGY CORP (BTE) for the 18-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BTE was recently trading at $1.97 and has an implied volatility of 51.53% for this period. Based on an analysis of the options available for BTE expiring on 18-Jul-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $1.96-$2.32 at expiration. In this scenario, the average linear return for the trade would be 24.10%.
Big 7.65% Change: After closing the last trading session at $1.83, BAYTEX ENERGY CORP opened today at $1.85 and has reached a high of $1.99.
Trade approach: A movement as big as 7.65% is a significantly bullish indicator, so this trade is designed to be profitable if BTE maintains its current direction and does not revert back to pricing on the bearish side of $1.97 on 18-Jul-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 BAYTEX ENERGY CORP closes at or above $1.90 on 18-Jul-2025. Based on our risk-neutral analysis, there is a 57.26% 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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