Quantchabot has detected a promising Bull Call Spread trade opportunity for CHARLES SCHWAB (SCHW) for the 14-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SCHW was recently trading at $56.77 and has an implied volatility of 78.42% for this period. Based on an analysis of the options available for SCHW expiring on 14-Apr-2023, there is a 34.20% likelihood that the underlying will close within the analyzed range of $57.00-$71.83 at expiration. In this scenario, the average linear return for the trade would be 10.93%.
Big 9.35% Change: After closing the last trading session at $51.91, CHARLES SCHWAB opened today at $59.29 and has reached a high of $61.11.
Trade approach: A movement as big as 9.35% is a significantly bullish indicator, so this trade is designed to be profitable if SCHW maintains its current direction and does not revert back to pricing on the bearish side of $56.77 on 14-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 CHARLES SCHWAB closes at or above $53.65 on 14-Apr-2023. Based on our risk-neutral analysis, there is a 60.35% 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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