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Quantchabot has detected a promising Bull Call Spread trade opportunity for WESTERN DIGITAL (WDC) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WDC was recently trading at $77.12 and has an implied volatility of 57.85% for this period. Based on an analysis of the options available for WDC expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $77.13-$97.58 at expiration. In this scenario, the average linear return for the trade would be 103.41%.
Big 7.30% Change: After closing the last trading session at $71.87, WESTERN DIGITAL opened today at $71.20 and has reached a high of $77.47.
Trade approach: A movement as big as 7.30% is a significantly bullish indicator, so this trade is designed to be profitable if WDC maintains its current direction and does not revert back to pricing on the bearish side of $77.12 on 16-Jul-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 WESTERN DIGITAL closes at or above $76.05 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 52.40% 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.