Quantchabot has detected a promising Bull Call Spread trade opportunity for LIVE NATION ENTERTAINMENT (LYV) for the 21-Jul-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LYV was recently trading at $74.80 and has an implied volatility of 33.96% for this period. Based on an analysis of the options available for LYV expiring on 21-Jul-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $75.75-$88.60 at expiration. In this scenario, the average linear return for the trade would be 12.32%.
Big 11.53% Change: After closing the last trading session at $67.07, LIVE NATION ENTERTAINMENT opened today at $74.19 and has reached a high of $76.96.
Trade approach: A movement as big as 11.53% is a significantly bullish indicator, so this trade is designed to be profitable if LYV maintains its current direction and does not revert back to pricing on the bearish side of $74.80 on 21-Jul-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 LIVE NATION ENTERTAINMENT closes at or above $72.70 on 21-Jul-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.
Leave a Reply
You must be logged in to post a comment.