The automated Quantcha Trade Ideas Service has detected a promising Covered Call trade opportunity for CENVEO (CVO) for the 21-Jul-2017 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CVO was recently trading at $6.07 and has an implied volatility of 42.49% for this period. Based on an analysis of the options available for CVO expiring on 21-Jul-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.09-$7.72 at expiration. In this scenario, the average linear return for the trade would be 12.73%.

Big 7.24% Change: After closing the last trading session at $5.66, CENVEO opened today at $5.60 and has reached a high of $6.10.

Trade approach: A movement as big as 7.24% is a significantly bullish indicator, so this trade is designed to be profitable if CVO maintains its current direction and does not revert back to pricing on the bearish side of $6.07 on 21-Jul-2017. 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 CENVEO closes at or above $6.03 on 21-Jul-2017. Based on our risk-neutral analysis, there is a 51.78% 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.