Quantchabot has detected a promising Bull Call Spread trade opportunity for EVOLUS INC. COMMON STOCK (EOLS) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EOLS was recently trading at $9.85 and has an implied volatility of 61.96% for this period. Based on an analysis of the options available for EOLS expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $9.93-$12.60 at expiration. In this scenario, the average linear return for the trade would be 14.91%.
Big 8.72% Change: After closing the last trading session at $9.06, EVOLUS INC. COMMON STOCK opened today at $9.15 and has reached a high of $9.87.
Trade approach: A movement as big as 8.72% is a significantly bullish indicator, so this trade is designed to be profitable if EOLS maintains its current direction and does not revert back to pricing on the bearish side of $9.85 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 EVOLUS INC. COMMON STOCK closes at or above $9.35 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 60.06% 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.