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Quantchabot has detected a promising Bull Call Spread trade opportunity for URANIUM ENERGY (UEC) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UEC was recently trading at $3.14 and has an implied volatility of 87.19% for this period. Based on an analysis of the options available for UEC expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.14-$3.82 at expiration. In this scenario, the average linear return for the trade would be 46.92%.
Big 8.28% Change: After closing the last trading session at $2.90, URANIUM ENERGY opened today at $2.99 and has reached a high of $3.15.
Trade approach: A movement as big as 8.28% is a significantly bullish indicator, so this trade is designed to be profitable if UEC maintains its current direction and does not revert back to pricing on the bearish side of $3.14 on 21-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 URANIUM ENERGY closes at or above $3.10 on 21-May-2021. Based on our risk-neutral analysis, there is a 52.63% 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.