Big Gainer Alert: Trading today’s 11.6% move in HIGH TIDE INC. COMMON SHARES $HITI

Quantchabot has detected a promising Covered Call trade opportunity for HIGH TIDE INC. COMMON SHARES (HITI) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HITI was recently trading at $2.08 and has an implied volatility of 121.68% for this period. Based on an analysis of the options available for HITI expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $2.09-$3.42 at expiration. In this scenario, the average linear return for the trade would be 21.66%.

Big 11.56% Change: After closing the last trading session at $1.86, HIGH TIDE INC. COMMON SHARES opened today at $2.01 and has reached a high of $2.23.

Trade approach: A movement as big as 11.56% is a significantly bullish indicator, so this trade is designed to be profitable if HITI maintains its current direction and does not revert back to pricing on the bearish side of $2.08 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 HIGH TIDE INC. COMMON SHARES closes at or above $1.98 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 54.33% 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.