Big Gainer Alert: Trading today’s 7.4% move in ENPHASE ENERGY $ENPH

Quantchabot has detected a promising Bull Call Spread trade opportunity for ENPHASE ENERGY (ENPH) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ENPH was recently trading at $182.17 and has an implied volatility of 81.34% for this period. Based on an analysis of the options available for ENPH expiring on 29-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $182.42-$240.89 at expiration. In this scenario, the average linear return for the trade would be 10.13%.

Big 7.41% Change: After closing the last trading session at $169.59, ENPHASE ENERGY opened today at $170.50 and has reached a high of $182.18.

Trade approach: A movement as big as 7.41% is a significantly bullish indicator, so this trade is designed to be profitable if ENPH maintains its current direction and does not revert back to pricing on the bearish side of $182.17 on 29-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 ENPHASE ENERGY closes at or above $150.40 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 75.67% 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.