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

HFC was recently trading at $23.89 and has an implied volatility of 53.64% for this period. Based on an analysis of the options available for HFC expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $23.90-$29.33 at expiration. In this scenario, the average linear return for the trade would be 67.72%.

Big 7.86% Change: After closing the last trading session at $22.15, HOLLYFRONTIER opened today at $22.55 and has reached a high of $23.90.

Trade approach: A movement as big as 7.86% is a significantly bullish indicator, so this trade is designed to be profitable if HFC maintains its current direction and does not revert back to pricing on the bearish side of $23.89 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 HOLLYFRONTIER closes at or above $23.70 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 51.60% 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.