52-Week High Alert: Trading today’s movement in MOODY'S
The automated Quantcha Trade Ideas Service has detected a promising
MCO was recently trading at $120.22 and has an implied volatility of 16.14% for this period. Based on an analysis of the options available for MCO expiring on 21-Jul-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $120.67-$127.47 at expiration. In this scenario, the average linear return for the trade would be 31.82%.
52 week high: MOODY'S recently reached a new 52-week high at $120.23. MCO had traded in the range $87.30-$119.99 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 MCO maintains its current direction and does not revert back to pricing on the bearish side of $120.22 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 MOODY'S closes at or above $120.19 on 21-Jul-2017. Based on our risk-neutral analysis, there is a 52.87% 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.
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This is an automated post generated based on a market analysis of delayed data at 6/14/2017 1:57:46 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.