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Quantchabot has detected a promising Bull Call Spread trade opportunity for SIMULATIONS PLUS (SLP) for the 19-Jun-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SLP was recently trading at $43.13 and has an implied volatility of 48.80% for this period. Based on an analysis of the options available for SLP expiring on 19-Jun-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $43.16-$51.82 at expiration. In this scenario, the average linear return for the trade would be 21.78%.
52 week high: SIMULATIONS PLUS recently reached a new 52-week high at $43.62. SLP had traded in the range $21.75-$43.25 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 SLP maintains its current direction and does not revert back to pricing on the bearish side of $43.13 on 19-Jun-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 SIMULATIONS PLUS closes at or above $43.00 on 19-Jun-2020. Based on our risk-neutral analysis, there is a 50.79% 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.