Quantchabot has detected a promising Bull Call Spread trade opportunity for UNITED THERAPEUTICS (UTHR) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UTHR was recently trading at $267.55 and has an implied volatility of 30.61% for this period. Based on an analysis of the options available for UTHR expiring on 17-Feb-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $270.13-$313.60 at expiration. In this scenario, the average linear return for the trade would be 11.70%.
52 week high: UNITED THERAPEUTICS recently reached a new 52-week high at $271.92. UTHR had traded in the range $158.38-$270.61 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 UTHR maintains its current direction and does not revert back to pricing on the bearish side of $267.55 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 UNITED THERAPEUTICS closes at or above $260.40 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 59.71% 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.