Quantchabot has detected a promising Bull Call Spread trade opportunity for ULTA BEAUTY INC (ULTA) for the 25-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ULTA was recently trading at $450.34 and has an implied volatility of 17.20% for this period. Based on an analysis of the options available for ULTA expiring on 25-Nov-2022, there is a 35.07% likelihood that the underlying will close within the analyzed range of $450.48-$457.24 at expiration. In this scenario, the average linear return for the trade would be 10.62%.
52 week high: ULTA BEAUTY INC recently reached a new 52-week high at $451.48. ULTA had traded in the range $330.80-$451.30 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 ULTA maintains its current direction and does not revert back to pricing on the bearish side of $450.34 on 25-Nov-2022. 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 ULTA BEAUTY INC closes at or above $448.80 on 25-Nov-2022. Based on our risk-neutral analysis, there is a 60.21% 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.