Big Gainer Alert: Trading today’s 7.2% move in FORD MOTOR $F

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Quantchabot has detected a promising Bull Call Spread trade opportunity for FORD MOTOR (F) for the 1-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

F was recently trading at $13.33 and has an implied volatility of 49.99% for this period. Based on an analysis of the options available for F expiring on 1-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $13.34-$16.05 at expiration. In this scenario, the average linear return for the trade would be 12.22%.

Big 7.17% Change: After closing the last trading session at $12.44, FORD MOTOR opened today at $12.88 and has reached a high of $13.41.

Trade approach: A movement as big as 7.17% is a significantly bullish indicator, so this trade is designed to be profitable if F maintains its current direction and does not revert back to pricing on the bearish side of $13.33 on 1-Jul-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 FORD MOTOR closes at or above $12.01 on 1-Jul-2022. Based on our risk-neutral analysis, there is a 71.62% 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.