Quantchabot has detected a promising Bull Call Spread trade opportunity for VIRTU FINANCIAL INC. CLASS A (VIRT) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VIRT was recently trading at $23.23 and has an implied volatility of 34.61% for this period. Based on an analysis of the options available for VIRT expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $23.28-$25.70 at expiration. In this scenario, the average linear return for the trade would be 10.81%.
Big 8.50% Change: After closing the last trading session at $21.41, VIRTU FINANCIAL INC. CLASS A opened today at $22.97 and has reached a high of $23.74.
Trade approach: A movement as big as 8.50% is a significantly bullish indicator, so this trade is designed to be profitable if VIRT maintains its current direction and does not revert back to pricing on the bearish side of $23.23 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 VIRTU FINANCIAL INC. CLASS A closes at or above $23.10 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 53.13% 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.