Quantchabot has detected a promising Bull Call Spread trade opportunity for CLARIVATE PLC (CLVT) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CLVT was recently trading at $9.96 and has an implied volatility of 49.69% for this period. Based on an analysis of the options available for CLVT expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $10.02-$12.23 at expiration. In this scenario, the average linear return for the trade would be 13.64%.
Big 7.74% Change: After closing the last trading session at $9.24, CLARIVATE PLC opened today at $9.26 and has reached a high of $9.97.
Trade approach: A movement as big as 7.74% is a significantly bullish indicator, so this trade is designed to be profitable if CLVT maintains its current direction and does not revert back to pricing on the bearish side of $9.96 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 CLARIVATE PLC closes at or above $9.40 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 62.59% 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.