Quantchabot has detected a promising Bull Call Spread trade opportunity for ONTO INNOVATION INC (ONTO) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ONTO was recently trading at $122.31 and has an implied volatility of 35.49% for this period. Based on an analysis of the options available for ONTO expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $123.32-$141.13 at expiration. In this scenario, the average linear return for the trade would be 10.99%.
Big 7.06% Change: After closing the last trading session at $114.24, ONTO INNOVATION INC opened today at $115.41 and has reached a high of $122.31.
Trade approach: A movement as big as 7.06% is a significantly bullish indicator, so this trade is designed to be profitable if ONTO maintains its current direction and does not revert back to pricing on the bearish side of $122.31 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 ONTO INNOVATION INC closes at or above $123.05 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.65% 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.