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Quantchabot has detected a promising Bull Call Spread trade opportunity for FLEX LTD (FLEX) for the 23-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FLEX was recently trading at $14.19 and has an implied volatility of 177.55% for this period. Based on an analysis of the options available for FLEX expiring on 23-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $14.19-$18.26 at expiration. In this scenario, the average linear return for the trade would be 34.73%.
Big 12.85% Change: After closing the last trading session at $12.57, FLEX LTD opened today at $14.04 and has reached a high of $14.95.
Trade approach: A movement as big as 12.85% is a significantly bullish indicator, so this trade is designed to be profitable if FLEX maintains its current direction and does not revert back to pricing on the bearish side of $14.19 on 23-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 FLEX LTD closes at or above $14.10 on 23-Oct-2020. Based on our risk-neutral analysis, there is a 50.95% 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.