Quantchabot has detected a promising Bull Call Spread trade opportunity for TRIP.COM GROUP LTD ADS (TCOM) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TCOM was recently trading at $39.13 and has an implied volatility of 46.59% for this period. Based on an analysis of the options available for TCOM expiring on 17-Mar-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $39.40-$46.95 at expiration. In this scenario, the average linear return for the trade would be 10.40%.
52 week high: TRIP.COM GROUP LTD ADS recently reached a new 52-week high at $39.13. TCOM had traded in the range $14.29-$39.09 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 TCOM maintains its current direction and does not revert back to pricing on the bearish side of $39.13 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 TRIP.COM GROUP LTD ADS closes at or above $36.55 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 66.58% 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.