Quantcha now offering unlimited commission-free options trading.

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

SNE was recently trading at $90.30 and has an implied volatility of 26.21% for this period. Based on an analysis of the options available for SNE expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $90.32-$100.48 at expiration. In this scenario, the average linear return for the trade would be 71.01%.

52 week high: SONY CORPORATION recently reached a new 52-week high at $91.10. SNE had traded in the range $50.94-$90.88 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 SNE maintains its current direction and does not revert back to pricing on the bearish side of $90.30 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 SONY CORPORATION closes at or above $90.25 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.29% 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.