52-Week High Alert: Trading today’s movement in NXP SEMICONDUCTOR $NXPI

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Quantchabot has detected a promising Bull Call Spread trade opportunity for NXP SEMICONDUCTOR (NXPI) for the 30-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NXPI was recently trading at $215.35 and has an implied volatility of 40.32% for this period. Based on an analysis of the options available for NXPI expiring on 30-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $215.37-$239.47 at expiration. In this scenario, the average linear return for the trade would be 66.92%.

52 week high: NXP SEMICONDUCTOR recently reached a new 52-week high at $215.36. NXPI had traded in the range $72.86-$209.59 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 NXPI maintains its current direction and does not revert back to pricing on the bearish side of $215.35 on 30-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 NXP SEMICONDUCTOR closes at or above $214.70 on 30-Apr-2021. Based on our risk-neutral analysis, there is a 51.17% 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.