Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Call Spread trade opportunity for DIAMONDBACK ENERGY INC (FANG) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. FANG was recently trading at $33.13 and has an implied volatility of 61.02% for this period. Based on an analysis of the options available for FANG expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $33.13-$39.50 at expiration. In this scenario, the average linear return for the trade would be 69.15%. Big 8.62% Change: After closing the last trading session at $30.50, DIAMONDBACK ENERGY INC opened today at $30.88 and has reached a high of $33.17. Trade approach: A movement as big as 8.62% is a significantly bullish indicator, so this trade is designed to be profitable if FANG maintains its current direction and does not revert back to pricing on the bearish side of $33.13 on 16-Oct-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 DIAMONDBACK ENERGY INC closes at or above $32.75 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 52.65% 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.