Quantchabot has detected a promising Bull Call Spread trade opportunity for AMC ENTERTAINMENT HOLDINGS INC (AMC) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMC was recently trading at $7.94 and has an implied volatility of 123.66% for this period. Based on an analysis of the options available for AMC expiring on 17-Feb-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $8.02-$14.65 at expiration. In this scenario, the average linear return for the trade would be 18.11%.
Big 8.47% Change: After closing the last trading session at $7.32, AMC ENTERTAINMENT HOLDINGS INC opened today at $7.35 and has reached a high of $7.99.
Trade approach: A movement as big as 8.47% is a significantly bullish indicator, so this trade is designed to be profitable if AMC maintains its current direction and does not revert back to pricing on the bearish side of $7.94 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 AMC ENTERTAINMENT HOLDINGS INC closes at or above $6.08 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 67.70% 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.