Quantchabot has detected a promising Bull Call Spread trade opportunity for ALTICE USA INC (ATUS) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ATUS was recently trading at $11.04 and has an implied volatility of 60.17% for this period. Based on an analysis of the options available for ATUS expiring on 21-Oct-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $11.09-$14.67 at expiration. In this scenario, the average linear return for the trade would be 11.80%.
Big 14.17% Change: After closing the last trading session at $9.67, ALTICE USA INC opened today at $10.55 and has reached a high of $11.37.
Trade approach: A movement as big as 14.17% is a significantly bullish indicator, so this trade is designed to be profitable if ATUS maintains its current direction and does not revert back to pricing on the bearish side of $11.04 on 21-Oct-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 ALTICE USA INC closes at or above $10.05 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 63.83% 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.