Quantchabot has detected a promising Bull Call Spread trade opportunity for AMN HEALTHCARE SERVICES (AMN) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMN was recently trading at $116.94 and has an implied volatility of 46.34% for this period. Based on an analysis of the options available for AMN expiring on 21-Oct-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $117.49-$145.48 at expiration. In this scenario, the average linear return for the trade would be 13.91%.
Big 8.04% Change: After closing the last trading session at $108.24, AMN HEALTHCARE SERVICES opened today at $110.96 and has reached a high of $121.95.
Trade approach: A movement as big as 8.04% is a significantly bullish indicator, so this trade is designed to be profitable if AMN maintains its current direction and does not revert back to pricing on the bearish side of $116.94 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 AMN HEALTHCARE SERVICES closes at or above $110.70 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 60.99% 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.