Quantchabot has detected a promising Bull Call Spread trade opportunity for VERISK ANALYTICS (VRSK) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VRSK was recently trading at $239.17 and has an implied volatility of 18.97% for this period. Based on an analysis of the options available for VRSK expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $240.85-$259.02 at expiration. In this scenario, the average linear return for the trade would be 10.36%.
52 week high: VERISK ANALYTICS recently reached a new 52-week high at $239.40. VRSK had traded in the range $162.94-$238.82 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 VRSK maintains its current direction and does not revert back to pricing on the bearish side of $239.17 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 VERISK ANALYTICS closes at or above $240.10 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 51.69% 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.