52-Week High Alert: Trading today’s movement in ROSS STORES $ROST

Quantchabot has detected a promising Bull Call Spread trade opportunity for ROSS STORES (ROST) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ROST was recently trading at $116.38 and has an implied volatility of 33.27% for this period. Based on an analysis of the options available for ROST expiring on 17-Feb-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $117.19-$137.83 at expiration. In this scenario, the average linear return for the trade would be 11.38%.

52 week high: ROSS STORES recently reached a new 52-week high at $116.74. ROST had traded in the range $69.24-$115.90 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 ROST maintains its current direction and does not revert back to pricing on the bearish side of $116.38 on 17-Feb-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 ROSS STORES closes at or above $111.60 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 61.85% 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.