Quantchabot has detected a promising Bull Call Spread trade opportunity for AEHR TEST (AEHR) for the 15-Sep-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AEHR was recently trading at $44.42 and has an implied volatility of 69.95% for this period. Based on an analysis of the options available for AEHR expiring on 15-Sep-2023, there is a 34.24% likelihood that the underlying will close within the analyzed range of $44.55-$52.19 at expiration. In this scenario, the average linear return for the trade would be 10.18%.
Big 7.04% Change: After closing the last trading session at $41.50, AEHR TEST opened today at $44.15 and has reached a high of $45.97.
Trade approach: A movement as big as 7.04% is a significantly bullish indicator, so this trade is designed to be profitable if AEHR maintains its current direction and does not revert back to pricing on the bearish side of $44.42 on 15-Sep-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 AEHR TEST closes at or above $44.00 on 15-Sep-2023. Based on our risk-neutral analysis, there is a 53.14% 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.