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Quantchabot has detected a promising Bull Call Spread trade opportunity for HYLIION (HYLN) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HYLN was recently trading at $12.47 and has an implied volatility of 94.57% for this period. Based on an analysis of the options available for HYLN expiring on 7-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.47-$16.38 at expiration. In this scenario, the average linear return for the trade would be 71.14%.
Big 14.83% Change: After closing the last trading session at $10.86, HYLIION opened today at $11.82 and has reached a high of $12.67.
Trade approach: A movement as big as 14.83% is a significantly bullish indicator, so this trade is designed to be profitable if HYLN maintains its current direction and does not revert back to pricing on the bearish side of $12.47 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 HYLIION closes at or above $12.11 on 7-May-2021. Based on our risk-neutral analysis, there is a 54.29% 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.