Big Gainer Alert: Trading today’s 11.6% move in LUCID GROUP INC $LCID

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

LCID was recently trading at $18.55 and has an implied volatility of 90.83% for this period. Based on an analysis of the options available for LCID expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $18.58-$24.97 at expiration. In this scenario, the average linear return for the trade would be 12.36%.

Big 11.58% Change: After closing the last trading session at $16.63, LUCID GROUP INC opened today at $17.16 and has reached a high of $18.56.

Trade approach: A movement as big as 11.58% is a significantly bullish indicator, so this trade is designed to be profitable if LCID maintains its current direction and does not revert back to pricing on the bearish side of $18.55 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 LUCID GROUP INC closes at or above $16.57 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 65.08% 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.