Quantchabot has detected a promising Bull Call Spread trade opportunity for VALMONT INDUSTRIES (VMI) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VMI was recently trading at $337.87 and has an implied volatility of 24.71% for this period. Based on an analysis of the options available for VMI expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $339.52-$374.89 at expiration. In this scenario, the average linear return for the trade would be 10.10%.
52 week high: VALMONT INDUSTRIES recently reached a new 52-week high at $340.51. VMI had traded in the range $203.31-$331.14 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 VMI maintains its current direction and does not revert back to pricing on the bearish side of $337.87 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 VALMONT INDUSTRIES closes at or above $337.20 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 52.75% 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.