Quantchabot has detected a promising Bull Call Spread trade opportunity for MASTERCARD (MA) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MA was recently trading at $405.51 and has an implied volatility of 18.77% for this period. Based on an analysis of the options available for MA expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $408.94-$439.48 at expiration. In this scenario, the average linear return for the trade would be 10.24%.
52 week high: MASTERCARD recently reached a new 52-week high at $406.31. MA had traded in the range $276.87-$405.19 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 MA maintains its current direction and does not revert back to pricing on the bearish side of $405.51 on 20-Oct-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 MASTERCARD closes at or above $403.46 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 57.43% 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.