Quantchabot has detected a promising Bull Call Spread trade opportunity for APOLLO GLOBAL MANAGEMENT (APO) for the 27-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APO was recently trading at $88.55 and has an implied volatility of 24.64% for this period. Based on an analysis of the options available for APO expiring on 27-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $89.19-$97.41 at expiration. In this scenario, the average linear return for the trade would be 10.04%.
52 week high: APOLLO GLOBAL MANAGEMENT recently reached a new 52-week high at $88.95. APO had traded in the range $45.62-$88.88 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 APO maintains its current direction and does not revert back to pricing on the bearish side of $88.55 on 27-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 APOLLO GLOBAL MANAGEMENT closes at or above $87.65 on 27-Oct-2023. Based on our risk-neutral analysis, there is a 57.85% 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.
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