Quantchabot has detected a promising Bull Call Spread trade opportunity for WESTERN ALLIANCE BANCORP (WAL) for the 30-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WAL was recently trading at $29.60 and has an implied volatility of 111.51% for this period. Based on an analysis of the options available for WAL expiring on 30-Jun-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $29.83-$44.44 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
Big 7.75% Change: After closing the last trading session at $27.47, WESTERN ALLIANCE BANCORP opened today at $27.54 and has reached a high of $29.62.
Trade approach: A movement as big as 7.75% is a significantly bullish indicator, so this trade is designed to be profitable if WAL maintains its current direction and does not revert back to pricing on the bearish side of $29.60 on 30-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 WESTERN ALLIANCE BANCORP closes at or above $25.80 on 30-Jun-2023. Based on our risk-neutral analysis, there is a 64.21% 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.