Big Gainer Alert: Trading today’s 8.0% move in AMC ENTERTAINMENT HOLDINGS INC $AMC

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Quantchabot has detected a promising Bull Call Spread trade opportunity for AMC ENTERTAINMENT HOLDINGS INC (AMC) for the 2-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AMC was recently trading at $14.02 and has an implied volatility of 172.36% for this period. Based on an analysis of the options available for AMC expiring on 2-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $14.02-$25.91 at expiration. In this scenario, the average linear return for the trade would be 175.62%.

Big 7.97% Change: After closing the last trading session at $12.98, AMC ENTERTAINMENT HOLDINGS INC opened today at $13.67 and has reached a high of $14.21.

Trade approach: A movement as big as 7.97% 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 $14.02 on 2-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 AMC ENTERTAINMENT HOLDINGS INC closes at or above $13.99 on 2-Jul-2021. Based on our risk-neutral analysis, there is a 50.12% 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.