See More Trade Ideas for YPF
How this YPF Bull Call Spread Works
The bottom of the YPF trade card shows us that we would buy one call and sell another with the same 15-Dec-23 expiration (this is a bull call spread as indicated on the top of the card).
Buy: 15-Dec-23 12.5 CALL
Sell: 15-Dec-23 17 CALL
Reasons to Like This Trade
- You can buy this spread for $2.20 when theoretically it’s worth $2.70. Simply put, the market is implying a theoretical edge of 22.9%.
- Your maximum gain is $2.30, which means you can make an astounding 104.5% return on your investment in 18 trading days! (That's if the stock closes at 17 or above. $2.30 / $2.20 = 104.5%) At the time of this alert, the stock was trading at 14.70.
- The stock only needs to close at, or above, 17.00 after 18 trading days for you to realize this maximum return. That’s only a 15.7% gain! If you look at YPF historically drift, you will find that 63% of the time the stock drifted higher than 15.7% in 18 trading days. Based on historical stock behavior (historical stock drift) the spread has a 63% chance of success.
5 out of 7 indicators are pointing to a bullish sentiment in the stock, which is enough to believe there is a decent chance the stock price could hit its mark of 17.00. Look, nobody knows for sure if the stock is going to go up or down, but, if you had to handicap the stock price, these metrics are indicating that YPF is really riding the momentum of bullish signals.
Metric Signal Bull or Bear Relative Performance 1-yr Outperform Bullish Relative Performance 3-Mon Underperform Bearish Relative Performance 2-Wk Outperform Bullish Seasonality Neutral Neutral Technical Fast Bullish Crossover Bullish Historical Price Action 63% Uptrend Bullish Option Order Flow Sentiment Positive Net Option Delta Bullish
This trade in YPF looks like a good opportunity because:
- 5 out of 7 bullish indicators support positive momentum
- 104.5% potential return on your investment
- Theoretical edge of 22.9%
- The stock price is only 15.7% away from the price for you to make the maximum gain!
Don't Let an Opportunity Pass You By!
How to Find More YPF Bull Call Spread Strategies
And if you want to find more bull call spreads for other stocks, go to the bull call spread screener
Technical: Fast Bullish Crossover
Historical Price Action: 63% Uptrend
Option Order Flow Sentiment: Positive Net Option Delta
At the time of this YPF trade idea, bullish option order flow exceeded bearish option order flow. The net option delta volume was 41 K.
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