Quantchabot has detected a new Bull Call Spread trade opportunity for HESS MIDSTREAM LP (HESM) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HESM was recently trading at $42.13 and has an implied volatility of 25.33% for this period. Based on an analysis of the options available for HESM expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $42.31-$45.74 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
52 week high: HESS MIDSTREAM LP recently reached a new 52-week high at $42.31. HESM had traded in the range $32.75-$42.31 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 HESM maintains its current direction and does not revert back to pricing on the bearish side of $42.13 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 HESS MIDSTREAM LP closes at or above $41.70 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 57.38% 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.
Leave a Reply
You must be logged in to post a comment.