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Quantchabot has detected a promising Bull Call Spread trade opportunity for 1LIFE HEALTHCARE INC. (ONEM) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ONEM was recently trading at $35.41 and has an implied volatility of 52.71% for this period. Based on an analysis of the options available for ONEM expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $35.41-$41.33 at expiration. In this scenario, the average linear return for the trade would be 48.43%.
Big 7.37% Change: After closing the last trading session at $32.98, 1LIFE HEALTHCARE INC. opened today at $32.99 and has reached a high of $36.03.
Trade approach: A movement as big as 7.37% is a significantly bullish indicator, so this trade is designed to be profitable if ONEM maintains its current direction and does not revert back to pricing on the bearish side of $35.41 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 1LIFE HEALTHCARE INC. closes at or above $35.35 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 50.46% 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.