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-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. FANG was recently trading at $87.34 and has an implied volatility of 47.86% for this period. Based on an analysis of the options available for FANG expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $87.35-$101.58 at expiration. In this scenario, the average linear return for the trade would be 73.60%. 52 week high: DIAMONDBACK ENERGY INC recently reached a new 52-week high at $90.75. FANG had traded in the range $23.63-$90.18 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 FANG maintains its current direction and does not revert back to pricing on the bearish side of $87.34 on 16-Jul-2021. 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 $87.20 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 50.44% 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.