The automated Quantcha Trade Ideas Service has detected a promising
GOGL was recently trading at $8.09 and has an implied volatility of 48.69% for this period. Based on an analysis of the options available for GOGL expiring on 19-May-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $8.12-$9.95 at expiration. In this scenario, the average linear return for the trade would be 12.24%.
Big 9.03% Change: After closing the last trading session at $7.42, GOLDEN OCEAN GROUP opened today at $7.94 and has reached a high of $8.15.
Trade approach: A movement as big as 9.03% is a significantly bullish indicator, so this trade is designed to be profitable if GOGL maintains its current direction and does not revert back to pricing on the bearish side of $8.09 on 19-May-2017. 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 GOLDEN OCEAN GROUP closes at or above $8.05 on 19-May-2017. Based on our risk-neutral analysis, there is a 51.70% 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.
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This is an automated post generated based on a market analysis of delayed data at 3/28/2017 12:24:20 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.