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Quantchabot has detected a promising Bull Call Spread trade opportunity for ADVANCED MICRO DEVICES INC. C (AMD) for the 24-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMD was recently trading at $47.12 and has an implied volatility of 40.68% for this period. Based on an analysis of the options available for AMD expiring on 24-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $47.18-$52.97 at expiration. In this scenario, the average linear return for the trade would be 83.30%.
52 week high: ADVANCED MICRO DEVICES INC. C recently reached a new 52-week high at $47.31. AMD had traded in the range $16.03-$46.61 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 AMD maintains its current direction and does not revert back to pricing on the bearish side of $47.12 on 24-Jan-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 ADVANCED MICRO DEVICES INC. C closes at or above $47.05 on 24-Jan-2020. Based on our risk-neutral analysis, there is a 50.98% 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.