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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for COMSTOCK RESOURCES (CRK) for the 17-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CRK was recently trading at $6.96 and has an implied volatility of 53.15% for this period. Based on an analysis of the options available for CRK expiring on 17-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.97-$8.41 at expiration. In this scenario, the average linear return for the trade would be 42.68%.

Big 7.08% Change: After closing the last trading session at $6.50, COMSTOCK RESOURCES opened today at $6.92 and has reached a high of $7.14.

Trade approach: A movement as big as 7.08% is a significantly bullish indicator, so this trade is designed to be profitable if CRK maintains its current direction and does not revert back to pricing on the bearish side of $6.96 on 17-Jan-2020. 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 COMSTOCK RESOURCES closes at or above $6.95 on 17-Jan-2020. Based on our risk-neutral analysis, there is a 50.67% 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.