Quantchabot has detected a promising Bull Call Spread trade opportunity for MARTEN TRANSPORT (MRTN) for the 17-Mar-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MRTN was recently trading at $22.00 and has an implied volatility of 31.95% for this period. Based on an analysis of the options available for MRTN expiring on 17-Mar-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $22.15-$24.98 at expiration. In this scenario, the average linear return for the trade would be 13.21%.
Big 7.01% Change: After closing the last trading session at $20.56, MARTEN TRANSPORT opened today at $21.00 and has reached a high of $22.41.
Trade approach: A movement as big as 7.01% is a significantly bullish indicator, so this trade is designed to be profitable if MRTN maintains its current direction and does not revert back to pricing on the bearish side of $22.00 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 MARTEN TRANSPORT closes at or above $21.60 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 58.31% 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.