Quantchabot has detected a promising Bull Call Spread trade opportunity for TESLA INC. (TSLA) for the 22-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TSLA was recently trading at $705.00 and has an implied volatility of 73.10% for this period. Based on an analysis of the options available for TSLA expiring on 22-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $705.71-$875.43 at expiration. In this scenario, the average linear return for the trade would be 10.07%.
Big 8.41% Change: After closing the last trading session at $650.28, TESLA INC. opened today at $673.81 and has reached a high of $706.93.
Trade approach: A movement as big as 8.41% is a significantly bullish indicator, so this trade is designed to be profitable if TSLA maintains its current direction and does not revert back to pricing on the bearish side of $705.00 on 22-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 TESLA INC. closes at or above $627.00 on 22-Jul-2022. Based on our risk-neutral analysis, there is a 70.89% 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.