Big Gainer Alert: Trading today’s 7.7% move in LUCID GROUP INC $LCID

Quantchabot has detected a promising Bull Call Spread trade opportunity for LUCID GROUP INC (LCID) for the 5-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LCID was recently trading at $19.41 and has an implied volatility of 82.78% for this period. Based on an analysis of the options available for LCID expiring on 5-Aug-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $19.44-$25.88 at expiration. In this scenario, the average linear return for the trade would be 15.38%.

Big 7.67% Change: After closing the last trading session at $18.03, LUCID GROUP INC opened today at $18.11 and has reached a high of $19.48.

Trade approach: A movement as big as 7.67% 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 $19.41 on 5-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 LUCID GROUP INC closes at or above $16.60 on 5-Aug-2022. Based on our risk-neutral analysis, there is a 70.94% 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.