52-Week High Alert: Trading today’s movement in PACCAR $PCAR

Quantchabot has detected a promising Bull Call Spread trade opportunity for PACCAR (PCAR) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PCAR was recently trading at $110.16 and has an implied volatility of 22.61% for this period. Based on an analysis of the options available for PCAR expiring on 17-Mar-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $110.91-$120.77 at expiration. In this scenario, the average linear return for the trade would be 11.96%.

52 week high: PACCAR recently reached a new 52-week high at $111.21. PCAR had traded in the range $77.00-$107.18 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 PCAR maintains its current direction and does not revert back to pricing on the bearish side of $110.16 on 17-Mar-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 PACCAR closes at or above $110.90 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 50.05% 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.