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Quantchabot has detected a promising Bull Call Spread trade opportunity for ALPHATEC HOLDINGS (ATEC) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ATEC was recently trading at $16.88 and has an implied volatility of 59.23% for this period. Based on an analysis of the options available for ATEC expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.88-$18.45 at expiration. In this scenario, the average linear return for the trade would be 38.23%.
Big 8.17% Change: After closing the last trading session at $15.60, ALPHATEC HOLDINGS opened today at $16.13 and has reached a high of $17.00.
Trade approach: A movement as big as 8.17% is a significantly bullish indicator, so this trade is designed to be profitable if ATEC maintains its current direction and does not revert back to pricing on the bearish side of $16.88 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 ALPHATEC HOLDINGS closes at or above $16.70 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 54.67% 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.