Quantchabot has detected a promising Bull Call Spread trade opportunity for BERKSHIRE HATHAWAY CL B (BRK.B) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BRK.B was recently trading at $362.93 and has an implied volatility of 14.11% for this period. Based on an analysis of the options available for BRK.B expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $365.51-$384.23 at expiration. In this scenario, the average linear return for the trade would be 10.74%.
52 week high: BERKSHIRE HATHAWAY CL B recently reached a new 52-week high at $366.47. BRK.B had traded in the range $259.85-$364.63 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 BRK.B maintains its current direction and does not revert back to pricing on the bearish side of $362.93 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 BERKSHIRE HATHAWAY CL B closes at or above $364.31 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 52.61% 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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