Quantchabot has detected a promising Bull Call Spread trade opportunity for HARMONIC (HLIT) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HLIT was recently trading at $14.78 and has an implied volatility of 43.76% for this period. Based on an analysis of the options available for HLIT expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $14.88-$17.86 at expiration. In this scenario, the average linear return for the trade would be 34.93%.
Big 7.85% Change: After closing the last trading session at $13.70, HARMONIC opened today at $13.91 and has reached a high of $14.91.
Trade approach: A movement as big as 7.85% is a significantly bullish indicator, so this trade is designed to be profitable if HLIT maintains its current direction and does not revert back to pricing on the bearish side of $14.78 on 20-Jan-2023. 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 HARMONIC closes at or above $14.35 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 57.86% 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.