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Quantchabot has detected a promising Bull Call Spread trade opportunity for APPHARVEST INC (APPH) for the 30-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APPH was recently trading at $16.48 and has an implied volatility of 85.76% for this period. Based on an analysis of the options available for APPH expiring on 30-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.49-$18.11 at expiration. In this scenario, the average linear return for the trade would be 55.45%.
Big 8.60% Change: After closing the last trading session at $15.18, APPHARVEST INC opened today at $15.95 and has reached a high of $16.65.
Trade approach: A movement as big as 8.60% is a significantly bullish indicator, so this trade is designed to be profitable if APPH maintains its current direction and does not revert back to pricing on the bearish side of $16.48 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 APPHARVEST INC closes at or above $16.40 on 30-Apr-2021. Based on our risk-neutral analysis, there is a 52.20% 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.