Quantchabot has detected a promising Bull Call Spread trade opportunity for TILRAY BRANDS INC (TLRY) for the 15-Dec-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TLRY was recently trading at $3.33 and has an implied volatility of 91.17% for this period. Based on an analysis of the options available for TLRY expiring on 15-Dec-2023, there is a 34.15% likelihood that the underlying will close within the analyzed range of $3.38-$5.38 at expiration. In this scenario, the average linear return for the trade would be 10.14%.
Big 10.10% Change: After closing the last trading session at $3.02, TILRAY BRANDS INC opened today at $3.06 and has reached a high of $3.37.
Trade approach: A movement as big as 10.10% is a significantly bullish indicator, so this trade is designed to be profitable if TLRY maintains its current direction and does not revert back to pricing on the bearish side of $3.33 on 15-Dec-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 TILRAY BRANDS INC closes at or above $3.31 on 15-Dec-2023. Based on our risk-neutral analysis, there is a 51.66% 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.