Quantchabot has detected a promising Bull Call Spread trade opportunity for FREYR BATTERY (FREY) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FREY was recently trading at $15.07 and has an implied volatility of 81.91% for this period. Based on an analysis of the options available for FREY expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $15.11-$19.16 at expiration. In this scenario, the average linear return for the trade would be 10.95%.
Big 14.72% Change: After closing the last trading session at $13.14, FREYR BATTERY opened today at $14.25 and has reached a high of $15.38.
Trade approach: A movement as big as 14.72% is a significantly bullish indicator, so this trade is designed to be profitable if FREY maintains its current direction and does not revert back to pricing on the bearish side of $15.07 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 FREYR BATTERY closes at or above $14.50 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 56.87% 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.