Big Gainer Alert: Trading today’s 7.3% move in TPI COMPOSITES INC $TPIC

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

TPIC was recently trading at $11.73 and has an implied volatility of 78.52% for this period. Based on an analysis of the options available for TPIC expiring on 17-Feb-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $11.85-$17.37 at expiration. In this scenario, the average linear return for the trade would be 10.29%.

Big 7.27% Change: After closing the last trading session at $10.94, TPI COMPOSITES INC opened today at $10.99 and has reached a high of $11.76.

Trade approach: A movement as big as 7.27% is a significantly bullish indicator, so this trade is designed to be profitable if TPIC maintains its current direction and does not revert back to pricing on the bearish side of $11.73 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 TPI COMPOSITES INC closes at or above $9.30 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 73.67% 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.