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Quantchabot has detected a promising Bull Call Spread trade opportunity for WAYFAIR INC (W) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
W was recently trading at $338.92 and has an implied volatility of 66.40% for this period. Based on an analysis of the options available for W expiring on 19-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $338.96-$417.94 at expiration. In this scenario, the average linear return for the trade would be 94.28%.
Big 9.65% Change: After closing the last trading session at $309.10, WAYFAIR INC opened today at $307.00 and has reached a high of $341.50.
Trade approach: A movement as big as 9.65% is a significantly bullish indicator, so this trade is designed to be profitable if W maintains its current direction and does not revert back to pricing on the bearish side of $338.92 on 19-Feb-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 WAYFAIR INC closes at or above $338.70 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 50.15% 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.