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

MNST was recently trading at $95.16 and has an implied volatility of 22.34% for this period. Based on an analysis of the options available for MNST expiring on 30-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $95.17-$100.58 at expiration. In this scenario, the average linear return for the trade would be 45.49%.

52 week high: MONSTER BEVERAGE recently reached a new 52-week high at $95.50. MNST had traded in the range $57.92-$95.11 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 MNST maintains its current direction and does not revert back to pricing on the bearish side of $95.16 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 MONSTER BEVERAGE closes at or above $94.85 on 30-Apr-2021. Based on our risk-neutral analysis, there is a 52.40% 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.