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Quantchabot has detected a promising Covered Call trade opportunity for LIBERTY INTERACTIVE QVC GROUP SER A (QRTEA) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

QRTEA was recently trading at $6.64 and has an implied volatility of 108.38% for this period. Based on an analysis of the options available for QRTEA expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.65-$9.08 at expiration. In this scenario, the average linear return for the trade would be 14.02%.

Big 7.87% Change: After closing the last trading session at $6.16, LIBERTY INTERACTIVE QVC GROUP SER A opened today at $6.19 and has reached a high of $6.65.

Trade approach: A movement as big as 7.87% is a significantly bullish indicator, so this trade is designed to be profitable if QRTEA maintains its current direction and does not revert back to pricing on the bearish side of $6.64 on 16-Oct-2020. 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 LIBERTY INTERACTIVE QVC GROUP SER A closes at or above $6.60 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 50.88% 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.