Quantchabot has detected a promising Bull Call Spread trade opportunity for LINCOLN ELECTRIC HOLDINGS (LECO) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LECO was recently trading at $150.14 and has an implied volatility of 24.63% for this period. Based on an analysis of the options available for LECO expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $150.48-$166.10 at expiration. In this scenario, the average linear return for the trade would be 13.71%.
52 week high: LINCOLN ELECTRIC HOLDINGS recently reached a new 52-week high at $150.62. LECO had traded in the range $118.17-$150.00 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 LECO maintains its current direction and does not revert back to pricing on the bearish side of $150.14 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 LINCOLN ELECTRIC HOLDINGS closes at or above $150.40 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 50.20% 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.