Quantchabot has detected a promising Bull Call Spread trade opportunity for TOYOTA MOTOR (TM) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TM was recently trading at $175.24 and has an implied volatility of 19.46% for this period. Based on an analysis of the options available for TM expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $176.49-$189.07 at expiration. In this scenario, the average linear return for the trade would be 11.18%.
52 week high: TOYOTA MOTOR recently reached a new 52-week high at $175.59. TM had traded in the range $130.07-$175.37 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 TM maintains its current direction and does not revert back to pricing on the bearish side of $175.24 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 TOYOTA MOTOR closes at or above $175.55 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.07% 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.