Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for AMBEV S.A. (ABEV) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ABEV was recently trading at $3.33 and has an implied volatility of 39.05% for this period. Based on an analysis of the options available for ABEV expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.33-$3.90 at expiration. In this scenario, the average linear return for the trade would be 20.89%.
52 week high: AMBEV S.A. recently reached a new 52-week high at $3.37. ABEV had traded in the range $2.08-$3.33 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if ABEV maintains its current direction and does not revert back to pricing on the bearish side of $3.33 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 AMBEV S.A. closes at or above $3.30 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 52.33% 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.