Quantchabot has detected a promising Bull Call Spread trade opportunity for CELSIUS HOLDINGS INC. COMMON STOCK (CELH) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CELH was recently trading at $184.42 and has an implied volatility of 40.21% for this period. Based on an analysis of the options available for CELH expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $185.95-$216.66 at expiration. In this scenario, the average linear return for the trade would be 10.12%.
52 week high: CELSIUS HOLDINGS INC. COMMON STOCK recently reached a new 52-week high at $186.49. CELH had traded in the range $78.25-$185.05 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 CELH maintains its current direction and does not revert back to pricing on the bearish side of $184.42 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 CELSIUS HOLDINGS INC. COMMON STOCK closes at or above $179.70 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 58.86% 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.