Quantchabot has detected a promising Bull Call Spread trade opportunity for AURORA INNOVATION INC. CLASS A (AUR) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AUR was recently trading at $3.50 and has an implied volatility of 83.80% for this period. Based on an analysis of the options available for AUR expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $3.52-$4.74 at expiration. In this scenario, the average linear return for the trade would be 19.99%.
Big 9.37% Change: After closing the last trading session at $3.20, AURORA INNOVATION INC. CLASS A opened today at $3.17 and has reached a high of $3.51.
Trade approach: A movement as big as 9.37% is a significantly bullish indicator, so this trade is designed to be profitable if AUR maintains its current direction and does not revert back to pricing on the bearish side of $3.50 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 AURORA INNOVATION INC. CLASS A closes at or above $3.40 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 54.85% 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.