Quantcha now offering unlimited commission-free options trading.

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

BK was recently trading at $45.25 and has an implied volatility of 28.26% for this period. Based on an analysis of the options available for BK expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $45.25-$47.34 at expiration. In this scenario, the average linear return for the trade would be 47.16%.

Big 7.33% Change: After closing the last trading session at $42.16, BANK OF NEW YORK MELLON opened today at $43.52 and has reached a high of $45.27.

Trade approach: A movement as big as 7.33% is a significantly bullish indicator, so this trade is designed to be profitable if BK maintains its current direction and does not revert back to pricing on the bearish side of $45.25 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 BANK OF NEW YORK MELLON closes at or above $45.25 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.03% 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.