Quantchabot has detected a promising Covered Call trade opportunity for LANZATECH GLOBAL INC. (LNZA) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LNZA was recently trading at $8.38 and has an implied volatility of 105.91% for this period. Based on an analysis of the options available for LNZA expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $8.43-$11.95 at expiration. In this scenario, the average linear return for the trade would be 14.38%.
Big 13.33% Change: After closing the last trading session at $7.39, LANZATECH GLOBAL INC. opened today at $7.54 and has reached a high of $8.41.
Trade approach: A movement as big as 13.33% is a significantly bullish indicator, so this trade is designed to be profitable if LNZA maintains its current direction and does not revert back to pricing on the bearish side of $8.38 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 LANZATECH GLOBAL INC. closes at or above $8.34 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 51.18% 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.