Send me real-time posts from this site at my email

52-Week High Alert: Trading today’s movement in CNH INDUSTRIAL NV

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Long Risk Reversal trade opportunity for CNH INDUSTRIAL NV (CNHI) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CNHI was recently trading at $18.48 and has an implied volatility of 32.24% for this period. Based on an analysis of the options available for CNHI expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.48-$21.31 at expiration. In this scenario, the average linear return for the trade would be 26.54%.

52 week high: CNH INDUSTRIAL NV recently reached a new 52-week high at $18.51. CNHI had traded in the range $9.41-$18.49 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 CNHI maintains its current direction and does not revert back to pricing on the bearish side of $18.48 on 21-Jan-2022. 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 CNH INDUSTRIAL NV closes at or above $18.45 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.50% 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.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue