52-Week High Alert: Trading today’s movement in E.L.F. BEAUTY INC $ELF

Quantchabot has detected a promising Bull Call Spread trade opportunity for E.L.F. BEAUTY INC (ELF) for the 16-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ELF was recently trading at $35.63 and has an implied volatility of 38.71% for this period. Based on an analysis of the options available for ELF expiring on 16-Sep-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $35.72-$40.84 at expiration. In this scenario, the average linear return for the trade would be 23.46%.

52 week high: E.L.F. BEAUTY INC recently reached a new 52-week high at $36.45. ELF had traded in the range $20.49-$34.95 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 ELF maintains its current direction and does not revert back to pricing on the bearish side of $35.63 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 E.L.F. BEAUTY INC closes at or above $34.05 on 16-Sep-2022. Based on our risk-neutral analysis, there is a 64.03% 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.