52-Week High Alert: Trading today’s movement in GRAND CANYON EDUCATION $LOPE

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

LOPE was recently trading at $111.13 and has an implied volatility of 28.36% for this period. Based on an analysis of the options available for LOPE expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $111.87-$125.46 at expiration. In this scenario, the average linear return for the trade would be 10.40%.

52 week high: GRAND CANYON EDUCATION recently reached a new 52-week high at $112.00. LOPE had traded in the range $70.00-$111.68 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if LOPE maintains its current direction and does not revert back to pricing on the bearish side of $111.13 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 GRAND CANYON EDUCATION closes at or above $111.30 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 51.77% 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.