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Quantchabot has detected a promising Bull Call Spread trade opportunity for TPI COMPOSITES INC (TPIC) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TPIC was recently trading at $58.82 and has an implied volatility of 52.55% for this period. Based on an analysis of the options available for TPIC expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $58.82-$63.67 at expiration. In this scenario, the average linear return for the trade would be 37.75%.
Big 8.01% Change: After closing the last trading session at $54.46, TPI COMPOSITES INC opened today at $56.06 and has reached a high of $59.43.
Trade approach: A movement as big as 8.01% is a significantly bullish indicator, so this trade is designed to be profitable if TPIC maintains its current direction and does not revert back to pricing on the bearish side of $58.82 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 TPI COMPOSITES INC closes at or above $58.50 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 52.76% 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.