When a trade setup ranks 10 out of 10 on the Option Sniper Scanner, it signals a high-probability opportunity based on historical data and technical indicators. Here’s why purchasing Calumet Specialty Products Partners (CLMT) 5/16/2025 $20 calls for $1.15 could be a strong play:
1. Proven Historical Accuracy
- The Option Sniper Scanner identified this trade with a 10/10 signal based on a two-year historical backtest, meaning similar setups have consistently resulted in profitable moves.
- When a pattern has shown a high probability of success in past market conditions, it strengthens the conviction in the trade.
2. Strong Technical & Order Flow Confirmation
- Unusual options activity or strong volume at this strike suggests that institutions or informed traders may be positioning for an upside move.
- The scanner’s confirmation aligns with potential bullish momentum in CLMT.
3. Favorable Risk-Reward Setup
- At $1.15 per contract ($115 total), the cost of entry is relatively low compared to the upside potential.
- The break-even price is $21.15 ($20 strike + $1.15 premium), offering substantial profit potential if CLMT rallies beyond this level.
4. Industry & Company Catalysts
- CLMT operates in the specialty petroleum and renewable fuels sector, which could see growth from increasing energy demand and regulatory tailwinds.
5. Ample Time for the Trade to Play Out
- The May 16, 2025 expiration gives about 3.5 months, allowing CLMT time to move higher while reducing short-term volatility risks.
With historical accuracy, technical confirmation, and an extended expiration, this trade offers a high-confidence setup with significant upside potential.
— Andrew Keene