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Quantchabot has detected a promising Bull Call Spread trade opportunity for PEABODY ENERGY CORP (BTU) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BTU was recently trading at $12.94 and has an implied volatility of 81.75% for this period. Based on an analysis of the options available for BTU expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.94-$14.74 at expiration. In this scenario, the average linear return for the trade would be 53.59%.

Big 8.01% Change: After closing the last trading session at $11.98, PEABODY ENERGY CORP opened today at $12.34 and has reached a high of $12.97.

Trade approach: A movement as big as 8.01% is a significantly bullish indicator, so this trade is designed to be profitable if BTU maintains its current direction and does not revert back to pricing on the bearish side of $12.94 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 PEABODY ENERGY CORP closes at or above $12.65 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 56.91% 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.