Quantchabot has detected a promising Bull Call Spread trade opportunity for MONSTER BEVERAGE (MNST) for the 16-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MNST was recently trading at $60.40 and has an implied volatility of 21.36% for this period. Based on an analysis of the options available for MNST expiring on 16-Jun-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $60.82-$65.43 at expiration. In this scenario, the average linear return for the trade would be 19.05%.
52 week high: MONSTER BEVERAGE recently reached a new 52-week high at $60.47. MNST had traded in the range $41.06-$58.80 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if MNST maintains its current direction and does not revert back to pricing on the bearish side of $60.40 on 16-Jun-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 MONSTER BEVERAGE closes at or above $59.20 on 16-Jun-2023. Based on our risk-neutral analysis, there is a 64.43% 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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