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Quantchabot has detected a promising Bull Call Spread trade opportunity for ADVANCED MICRO DEVICES INC. C (AMD) for the 29-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMD was recently trading at $98.27 and has an implied volatility of 64.06% for this period. Based on an analysis of the options available for AMD expiring on 29-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $98.28-$113.44 at expiration. In this scenario, the average linear return for the trade would be 88.68%.
52 week high: ADVANCED MICRO DEVICES INC. C recently reached a new 52-week high at $98.90. AMD had traded in the range $36.75-$97.98 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 AMD maintains its current direction and does not revert back to pricing on the bearish side of $98.27 on 29-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 ADVANCED MICRO DEVICES INC. C closes at or above $98.05 on 29-Jan-2021. Based on our risk-neutral analysis, there is a 50.64% 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.