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

CX was recently trading at $5.71 and has an implied volatility of 62.40% for this period. Based on an analysis of the options available for CX expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $5.71-$7.06 at expiration. In this scenario, the average linear return for the trade would be 74.27%.

Big 7.51% Change: After closing the last trading session at $5.31, CEMEX opened today at $5.40 and has reached a high of $5.72.

Trade approach: A movement as big as 7.51% is a significantly bullish indicator, so this trade is designed to be profitable if CX maintains its current direction and does not revert back to pricing on the bearish side of $5.71 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 CEMEX closes at or above $5.55 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 55.32% 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.