Quantchabot has detected a promising Bull Call Spread trade opportunity for FISERV (FISV) for the 28-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FISV was recently trading at $111.63 and has an implied volatility of 34.73% for this period. Based on an analysis of the options available for FISV expiring on 28-Apr-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $112.29-$126.97 at expiration. In this scenario, the average linear return for the trade would be 10.62%.
Big 7.08% Change: After closing the last trading session at $104.25, FISERV opened today at $108.07 and has reached a high of $112.10.
Trade approach: A movement as big as 7.08% is a significantly bullish indicator, so this trade is designed to be profitable if FISV maintains its current direction and does not revert back to pricing on the bearish side of $111.63 on 28-Apr-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 FISERV closes at or above $110.10 on 28-Apr-2023. Based on our risk-neutral analysis, there is a 56.39% 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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