Quantchabot has detected a promising Bull Call Spread trade opportunity for O’REILLY AUTOMOTIVE (ORLY) for the 16-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ORLY was recently trading at $939.07 and has an implied volatility of 18.79% for this period. Based on an analysis of the options available for ORLY expiring on 16-Jun-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $944.95-$1,005.38 at expiration. In this scenario, the average linear return for the trade would be 10.16%.
52 week high: O’REILLY AUTOMOTIVE recently reached a new 52-week high at $943.58. ORLY had traded in the range $562.90-$941.87 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 ORLY maintains its current direction and does not revert back to pricing on the bearish side of $939.07 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 O’REILLY AUTOMOTIVE closes at or above $937.80 on 16-Jun-2023. Based on our risk-neutral analysis, there is a 54.87% 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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