Big Gainer Alert: Trading today’s 14.7% move in EAST WEST BANCORP $EWBC

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

EWBC was recently trading at $59.42 and has an implied volatility of 126.96% for this period. Based on an analysis of the options available for EWBC expiring on 17-Mar-2023, there is a 34.71% likelihood that the underlying will close within the analyzed range of $59.45-$67.52 at expiration. In this scenario, the average linear return for the trade would be 10.96%.

Big 14.68% Change: After closing the last trading session at $51.82, EAST WEST BANCORP opened today at $58.60 and has reached a high of $59.88.

Trade approach: A movement as big as 14.68% is a significantly bullish indicator, so this trade is designed to be profitable if EWBC maintains its current direction and does not revert back to pricing on the bearish side of $59.42 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 EAST WEST BANCORP closes at or above $58.00 on 17-Mar-2023. Based on our risk-neutral analysis, there is a 57.89% 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.






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