The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for SUNCOR ENERGY () for the 16-Mar-2018 expiration period. You can analyze the opportunity in depth over at the .
SU was recently trading at $37.48 and has an implied volatility of 19.31% for this period. Based on an analysis of the options available for SU expiring on 16-Mar-2018, there is a 34.14% likelihood that the underlying will close within the analyzed range of $37.75-$41.35 at expiration. In this scenario, the average linear return for the trade would be 79.64%.
52 week high: SUNCOR ENERGY recently reached a new 52-week high at $37.68. SU had traded in the range $27.96-$36.93 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if SU maintains its current direction and does not revert back to pricing on the bearish side of $37.48 on 16-Mar-2018. 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 SUNCOR ENERGY closes at or above $37.55 on 16-Mar-2018. Based on our risk-neutral analysis, there is a 52.29% 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 .
This is an automated post generated based on a market analysis of delayed data at 1/3/2018 11:17:26 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.