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Quantchabot has detected a promising Bull Call Spread trade opportunity for BEAZER HOMES USA (BZH) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BZH was recently trading at $23.91 and has an implied volatility of 44.61% for this period. Based on an analysis of the options available for BZH expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $23.91-$28.03 at expiration. In this scenario, the average linear return for the trade would be 60.98%.
Big 7.17% Change: After closing the last trading session at $22.31, BEAZER HOMES USA opened today at $22.84 and has reached a high of $23.91.
Trade approach: A movement as big as 7.17% is a significantly bullish indicator, so this trade is designed to be profitable if BZH maintains its current direction and does not revert back to pricing on the bearish side of $23.91 on 18-Jun-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 BEAZER HOMES USA closes at or above $23.75 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 51.72% 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.