Covered Call Alert: SCIENTIFIC GAMES $SGMS returning up to 18.67% through 17-Jul-2020
Quantcha now offering
Quantchabot has detected a promising
SGMS was recently trading at $26.31 and has an implied volatility of 59.01% for this period. Based on an analysis of the options available for SGMS expiring on 17-Jul-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $17.83-$39.52 at expiration. In this scenario, the average linear return for the trade would be 10.04%.
Moneyness: These options are currently 1.10% in the money and there is a 52.01% likelihood that these options will be exercised before or at expiration.
Most upside: If SCIENTIFIC GAMES closes at or above $26.00, this trade could return up to 18.67%. Based on our analysis, there is a 52.06% likelihood of this return.
The downside: As with any covered call, the risk is substantial as it is vulnerable to a downturn in the underlying itself. There is a 31.50% chance the underlying will close at or below its breakeven price of $21.91, resulting in a net loss on the trade.
To find the best covered calls on the market, be sure to check out
To analyze this trade in depth, please visit the