Big Gainer Alert: Trading today’s 38.7% move in HAWAIIAN ELECTRIC $HE

Quantchabot has detected a promising Bull Call Spread trade opportunity for HAWAIIAN ELECTRIC (HE) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HE was recently trading at $13.40 and has an implied volatility of 145.91% for this period. Based on an analysis of the options available for HE expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $13.51-$23.65 at expiration. In this scenario, the average linear return for the trade would be 15.38%.

Big 38.72% Change: After closing the last trading session at $9.66, HAWAIIAN ELECTRIC opened today at $13.50 and has reached a high of $14.74.

Trade approach: A movement as big as 38.72% is a significantly bullish indicator, so this trade is designed to be profitable if HE maintains its current direction and does not revert back to pricing on the bearish side of $13.40 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 HAWAIIAN ELECTRIC closes at or above $9.00 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 76.64% 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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