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Quantchabot has detected a promising Bull Call Spread trade opportunity for MARRIOT INTERNATIONAL CLASS A (MAR) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MAR was recently trading at $143.72 and has an implied volatility of 38.94% for this period. Based on an analysis of the options available for MAR expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $143.74-$166.59 at expiration. In this scenario, the average linear return for the trade would be 65.65%.
52 week high: MARRIOT INTERNATIONAL CLASS A recently reached a new 52-week high at $145.28. MAR had traded in the range $46.56-$137.58 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 MAR maintains its current direction and does not revert back to pricing on the bearish side of $143.72 on 16-Apr-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 MARRIOT INTERNATIONAL CLASS A closes at or above $143.40 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 50.65% 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.