Quantchabot has detected a promising Bull Call Spread trade opportunity for FOMENTO ECONOMICO (FMX) for the 21-Jul-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FMX was recently trading at $102.27 and has an implied volatility of 21.50% for this period. Based on an analysis of the options available for FMX expiring on 21-Jul-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $103.36-$113.31 at expiration. In this scenario, the average linear return for the trade would be 11.62%.
52 week high: FOMENTO ECONOMICO recently reached a new 52-week high at $102.50. FMX had traded in the range $58.73-$101.80 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 FMX maintains its current direction and does not revert back to pricing on the bearish side of $102.27 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 FOMENTO ECONOMICO closes at or above $102.25 on 21-Jul-2023. Based on our risk-neutral analysis, there is a 54.67% 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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