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Quantchabot has detected a promising Bull Call Spread trade opportunity for SPRINT (S) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
S was recently trading at $8.32 and has an implied volatility of 54.23% for this period. Based on an analysis of the options available for S expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $8.34-$10.52 at expiration. In this scenario, the average linear return for the trade would be 62.59%.
Big 73.23% Change: After closing the last trading session at $4.80, SPRINT opened today at $8.35 and has reached a high of $8.45.
Trade approach: A movement as big as 73.23% is a significantly bullish indicator, so this trade is designed to be profitable if S maintains its current direction and does not revert back to pricing on the bearish side of $8.32 on 17-Apr-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 SPRINT closes at or above $8.15 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 53.97% 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.