Quantchabot has detected a promising Bull Call Spread trade opportunity for LEAR (LEA) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LEA was recently trading at $142.69 and has an implied volatility of 32.94% for this period. Based on an analysis of the options available for LEA expiring on 21-Apr-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $143.40-$159.63 at expiration. In this scenario, the average linear return for the trade would be 10.77%.
Big 8.16% Change: After closing the last trading session at $131.92, LEAR opened today at $135.00 and has reached a high of $144.70.
Trade approach: A movement as big as 8.16% is a significantly bullish indicator, so this trade is designed to be profitable if LEA maintains its current direction and does not revert back to pricing on the bearish side of $142.69 on 21-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 LEAR closes at or above $143.20 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 50.52% 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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