Quantchabot has detected a promising Covered Call trade opportunity for SENDAS DISTRIBUIDORA SA (ASAI) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ASAI was recently trading at $12.80 and has an implied volatility of 58.06% for this period. Based on an analysis of the options available for ASAI expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $12.89-$15.83 at expiration. In this scenario, the average linear return for the trade would be 10.62%.
Big 7.47% Change: After closing the last trading session at $11.91, SENDAS DISTRIBUIDORA SA opened today at $12.41 and has reached a high of $12.81.
Trade approach: A movement as big as 7.47% is a significantly bullish indicator, so this trade is designed to be profitable if ASAI maintains its current direction and does not revert back to pricing on the bearish side of $12.80 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 SENDAS DISTRIBUIDORA SA closes at or above $12.75 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 52.14% 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.