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Quantchabot has detected a promising Bull Call Spread trade opportunity for HIMAX TECHNOLOGIES (HIMX) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HIMX was recently trading at $15.96 and has an implied volatility of 87.22% for this period. Based on an analysis of the options available for HIMX expiring on 7-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $15.96-$20.52 at expiration. In this scenario, the average linear return for the trade would be 32.61%.
Big 10.49% Change: After closing the last trading session at $14.44, HIMAX TECHNOLOGIES opened today at $14.96 and has reached a high of $16.09.
Trade approach: A movement as big as 10.49% is a significantly bullish indicator, so this trade is designed to be profitable if HIMX maintains its current direction and does not revert back to pricing on the bearish side of $15.96 on 7-May-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 HIMAX TECHNOLOGIES closes at or above $15.65 on 7-May-2021. Based on our risk-neutral analysis, there is a 53.07% 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.