Big Gainer Alert: Trading today’s 7.0% move in WALT DISNEY $DIS

Quantchabot has detected a promising Bull Call Spread trade opportunity for WALT DISNEY (DIS) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DIS was recently trading at $98.25 and has an implied volatility of 34.16% for this period. Based on an analysis of the options available for DIS expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $98.91-$113.70 at expiration. In this scenario, the average linear return for the trade would be 12.36%.

Big 7.03% Change: After closing the last trading session at $91.80, WALT DISNEY opened today at $100.12 and has reached a high of $100.89.

Trade approach: A movement as big as 7.03% is a significantly bullish indicator, so this trade is designed to be profitable if DIS maintains its current direction and does not revert back to pricing on the bearish side of $98.25 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 WALT DISNEY closes at or above $94.45 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 62.98% 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.