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Quantchabot has detected a promising Bull Call Spread trade opportunity for AFFIRM HOLDINGS INC. CLASS A COMMON STOCK (AFRM) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AFRM was recently trading at $146.54 and has an implied volatility of 94.60% for this period. Based on an analysis of the options available for AFRM expiring on 19-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $146.55-$198.38 at expiration. In this scenario, the average linear return for the trade would be 101.98%.
52 week high: AFFIRM HOLDINGS INC. CLASS A COMMON STOCK recently reached a new 52-week high at $148.01. AFRM had traded in the range $46.50-$146.90 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 AFRM maintains its current direction and does not revert back to pricing on the bearish side of $146.54 on 19-Nov-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 AFFIRM HOLDINGS INC. CLASS A COMMON STOCK closes at or above $146.20 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 50.32% 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.