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Quantchabot has detected a promising Bull Call Spread trade opportunity for VUZIX CORP (VUZI) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VUZI was recently trading at $31.58 and has an implied volatility of 105.45% for this period. Based on an analysis of the options available for VUZI expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $31.58-$37.02 at expiration. In this scenario, the average linear return for the trade would be 64.75%.
Big 9.12% Change: After closing the last trading session at $28.94, VUZIX CORP opened today at $29.01 and has reached a high of $31.95.
Trade approach: A movement as big as 9.12% is a significantly bullish indicator, so this trade is designed to be profitable if VUZI maintains its current direction and does not revert back to pricing on the bearish side of $31.58 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 VUZIX CORP closes at or above $31.20 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 53.04% 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.