Quantchabot has detected a promising Bull Call Spread trade opportunity for AEHR TEST (AEHR) for the 16-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AEHR was recently trading at $12.49 and has an implied volatility of 81.48% for this period. Based on an analysis of the options available for AEHR expiring on 16-Sep-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $12.53-$16.77 at expiration. In this scenario, the average linear return for the trade would be 12.99%.
Big 9.47% Change: After closing the last trading session at $11.41, AEHR TEST opened today at $11.38 and has reached a high of $12.73.
Trade approach: A movement as big as 9.47% is a significantly bullish indicator, so this trade is designed to be profitable if AEHR maintains its current direction and does not revert back to pricing on the bearish side of $12.49 on 16-Sep-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 AEHR TEST closes at or above $11.35 on 16-Sep-2022. Based on our risk-neutral analysis, there is a 63.26% 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.