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Quantchabot has detected a promising Bull Call Spread trade opportunity for CHEVRON (CVX) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CVX was recently trading at $79.34 and has an implied volatility of 35.60% for this period. Based on an analysis of the options available for CVX expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $78.07-$90.96 at expiration. In this scenario, the average linear return for the trade would be 74.87%.

Big 11.51% Change: After closing the last trading session at $71.15, CHEVRON opened today at $80.00 and has reached a high of $84.27.

Trade approach: A movement as big as 11.51% is a significantly bullish indicator, so this trade is designed to be profitable if CVX maintains its current direction and does not revert back to pricing on the bearish side of $79.34 on 15-Jan-2021. 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 CHEVRON closes at or above $77.75 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 51.07% 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.