Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for NVIDIA (NVDA) for the 7-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NVDA was recently trading at $246.52 and has an implied volatility of 28.54% for this period. Based on an analysis of the options available for NVDA expiring on 7-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $246.84-$267.27 at expiration. In this scenario, the average linear return for the trade would be 67.18%.
52 week high: NVIDIA recently reached a new 52-week high at $248.55. NVDA had traded in the range $131.00-$242.04 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 NVDA maintains its current direction and does not revert back to pricing on the bearish side of $246.52 on 7-Feb-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 NVIDIA closes at or above $246.80 on 7-Feb-2020. Based on our risk-neutral analysis, there is a 50.09% 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.