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Quantchabot has detected a promising Bull Call Spread trade opportunity for CROCS (CROX) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CROX was recently trading at $148.72 and has an implied volatility of 48.57% for this period. Based on an analysis of the options available for CROX expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $148.73-$171.48 at expiration. In this scenario, the average linear return for the trade would be 63.63%.
Big 7.99% Change: After closing the last trading session at $137.72, CROCS opened today at $138.89 and has reached a high of $149.41.
Trade approach: A movement as big as 7.99% is a significantly bullish indicator, so this trade is designed to be profitable if CROX maintains its current direction and does not revert back to pricing on the bearish side of $148.72 on 15-Oct-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 CROCS closes at or above $148.50 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 50.44% 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.