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Quantchabot has detected a promising Bull Call Spread trade opportunity for T-MOBILE US INC. COMMON STOCK (TMUS) for the 30-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TMUS was recently trading at $121.16 and has an implied volatility of 28.35% for this period. Based on an analysis of the options available for TMUS expiring on 30-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $121.17-$128.90 at expiration. In this scenario, the average linear return for the trade would be 41.50%.
52 week high: T-MOBILE US INC. COMMON STOCK recently reached a new 52-week high at $121.50. TMUS had traded in the range $63.50-$119.20 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 TMUS maintains its current direction and does not revert back to pricing on the bearish side of $121.16 on 30-Oct-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 T-MOBILE US INC. COMMON STOCK closes at or above $121.05 on 30-Oct-2020. Based on our risk-neutral analysis, there is a 50.63% 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.