Big Gainer Alert: Trading today’s 10.6% move in ADVANCED MICRO DEVICES INC. C $AMD

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Quantchabot has detected a promising Bull Call Spread trade opportunity for ADVANCED MICRO DEVICES INC. C (AMD) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AMD was recently trading at $150.81 and has an implied volatility of 57.00% for this period. Based on an analysis of the options available for AMD expiring on 21-Jan-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $150.84-$195.07 at expiration. In this scenario, the average linear return for the trade would be 109.84%.

Big 10.61% Change: After closing the last trading session at $136.34, ADVANCED MICRO DEVICES INC. C opened today at $137.70 and has reached a high of $151.00.

Trade approach: A movement as big as 10.61% is a significantly bullish indicator, so this trade is designed to be profitable if AMD maintains its current direction and does not revert back to pricing on the bearish side of $150.81 on 21-Jan-2022. 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 ADVANCED MICRO DEVICES INC. C closes at or above $150.50 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.35% 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.