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Quantchabot has detected a promising Bull Call Spread trade opportunity for TESLA INC. (TSLA) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TSLA was recently trading at $505.90 and has an implied volatility of 79.64% for this period. Based on an analysis of the options available for TSLA expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $506.02-$693.80 at expiration. In this scenario, the average linear return for the trade would be 128.09%.
52 week high: TESLA INC. recently reached a new 52-week high at $507.76. TSLA had traded in the range $65.42-$502.49 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 TSLA maintains its current direction and does not revert back to pricing on the bearish side of $505.90 on 15-Jan-2021. 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 TESLA INC. closes at or above $502.80 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.81% 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.