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Big Gainer Alert: Trading today’s 9.4% move in TARGA RESOURCES

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Quantchabot has detected a promising Bull Call Spread trade opportunity for TARGA RESOURCES (TRGP) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TRGP was recently trading at $15.65 and has an implied volatility of 69.13% for this period. Based on an analysis of the options available for TRGP expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $15.65-$17.68 at expiration. In this scenario, the average linear return for the trade would be 49.98%.

Big 9.36% Change: After closing the last trading session at $14.31, TARGA RESOURCES opened today at $15.38 and has reached a high of $15.95.

Trade approach: A movement as big as 9.36% is a significantly bullish indicator, so this trade is designed to be profitable if TRGP maintains its current direction and does not revert back to pricing on the bearish side of $15.65 on 16-Oct-2020. 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 TARGA RESOURCES closes at or above $15.65 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 50.01% 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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