Quantchabot has detected a promising Bull Call Spread trade opportunity for SOCIEDAD QUIMICA Y MINERA (SQM) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SQM was recently trading at $98.50 and has an implied volatility of 52.76% for this period. Based on an analysis of the options available for SQM expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $99.16-$122.96 at expiration. In this scenario, the average linear return for the trade would be 10.45%.
Big 9.17% Change: After closing the last trading session at $90.23, SOCIEDAD QUIMICA Y MINERA opened today at $92.69 and has reached a high of $98.63.
Trade approach: A movement as big as 9.17% is a significantly bullish indicator, so this trade is designed to be profitable if SQM maintains its current direction and does not revert back to pricing on the bearish side of $98.50 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 SOCIEDAD QUIMICA Y MINERA closes at or above $94.30 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 59.25% 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.