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Quantchabot has detected a promising Bull Call Spread trade opportunity for INPHI (IPHI) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IPHI was recently trading at $182.18 and has an implied volatility of 27.66% for this period. Based on an analysis of the options available for IPHI expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $182.18-$189.96 at expiration. In this scenario, the average linear return for the trade would be 21.92%.
52 week high: INPHI recently reached a new 52-week high at $185.28. IPHI had traded in the range $84.38-$184.42 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 IPHI maintains its current direction and does not revert back to pricing on the bearish side of $182.18 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 INPHI closes at or above $181.80 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 52.02% 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.