Quantchabot has detected a promising Bull Call Spread trade opportunity for VERTIV HOLDINGS LLC (VRT) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VRT was recently trading at $38.09 and has an implied volatility of 47.03% for this period. Based on an analysis of the options available for VRT expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $38.41-$46.00 at expiration. In this scenario, the average linear return for the trade would be 12.99%.
52 week high: VERTIV HOLDINGS LLC recently reached a new 52-week high at $38.30. VRT had traded in the range $9.48-$37.22 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 VRT maintains its current direction and does not revert back to pricing on the bearish side of $38.09 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 VERTIV HOLDINGS LLC closes at or above $35.20 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 68.58% 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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