52-Week High Alert: Trading today’s movement in LI AUTO INC $LI

Quantchabot has detected a promising Bull Call Spread trade opportunity for LI AUTO INC (LI) for the 19-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LI was recently trading at $39.10 and has an implied volatility of 73.12% for this period. Based on an analysis of the options available for LI expiring on 19-Aug-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $39.16-$52.38 at expiration. In this scenario, the average linear return for the trade would be 12.90%.

52 week high: LI AUTO INC recently reached a new 52-week high at $39.77. LI had traded in the range $16.86-$37.45 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if LI maintains its current direction and does not revert back to pricing on the bearish side of $39.10 on 19-Aug-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 LI AUTO INC closes at or above $32.40 on 19-Aug-2022. Based on our risk-neutral analysis, there is a 74.30% 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.