Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for FIRST REPUBLIC BANK (SAN (FRC) for the 19-Mar-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FRC was recently trading at $167.14 and has an implied volatility of 29.14% for this period. Based on an analysis of the options available for FRC expiring on 19-Mar-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $167.15-$180.49 at expiration. In this scenario, the average linear return for the trade would be 43.55%.
52 week high: FIRST REPUBLIC BANK (SAN recently reached a new 52-week high at $168.39. FRC had traded in the range $70.06-$166.82 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 FRC maintains its current direction and does not revert back to pricing on the bearish side of $167.14 on 19-Mar-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 FIRST REPUBLIC BANK (SAN closes at or above $166.70 on 19-Mar-2021. Based on our risk-neutral analysis, there is a 51.41% 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.