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Quantchabot has detected a promising Bull Call Spread trade opportunity for UNITED STATES STEEL (X) for the 29-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

X was recently trading at $22.27 and has an implied volatility of 81.25% for this period. Based on an analysis of the options available for X expiring on 29-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $22.27-$27.10 at expiration. In this scenario, the average linear return for the trade would be 82.30%.

Big 8.90% Change: After closing the last trading session at $20.45, UNITED STATES STEEL opened today at $21.34 and has reached a high of $23.28.

Trade approach: A movement as big as 8.90% is a significantly bullish indicator, so this trade is designed to be profitable if X maintains its current direction and does not revert back to pricing on the bearish side of $22.27 on 29-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 UNITED STATES STEEL closes at or above $22.26 on 29-Jan-2021. Based on our risk-neutral analysis, there is a 50.11% 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.