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Quantchabot has detected a promising Bull Call Spread trade opportunity for AMC ENTERTAINMENT HOLDINGS INC (AMC) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMC was recently trading at $11.11 and has an implied volatility of 114.20% for this period. Based on an analysis of the options available for AMC expiring on 7-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $11.11-$13.59 at expiration. In this scenario, the average linear return for the trade would be 127.36%.
Big 9.34% Change: After closing the last trading session at $10.16, AMC ENTERTAINMENT HOLDINGS INC opened today at $10.69 and has reached a high of $11.16.
Trade approach: A movement as big as 9.34% is a significantly bullish indicator, so this trade is designed to be profitable if AMC maintains its current direction and does not revert back to pricing on the bearish side of $11.11 on 7-May-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 AMC ENTERTAINMENT HOLDINGS INC closes at or above $11.07 on 7-May-2021. Based on our risk-neutral analysis, there is a 50.71% 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.