Quantchabot has detected a promising Bull Call Spread trade opportunity for LAM RESEARCH (LRCX) for the 30-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LRCX was recently trading at $561.84 and has an implied volatility of 34.45% for this period. Based on an analysis of the options available for LRCX expiring on 30-Jun-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $564.19-$637.32 at expiration. In this scenario, the average linear return for the trade would be 10.38%.
52 week high: LAM RESEARCH recently reached a new 52-week high at $562.64. LRCX had traded in the range $299.59-$548.85 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 LRCX maintains its current direction and does not revert back to pricing on the bearish side of $561.84 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 LAM RESEARCH closes at or above $545.39 on 30-Jun-2023. Based on our risk-neutral analysis, there is a 60.96% 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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