Quantchabot has detected a promising Bull Call Spread trade opportunity for LITHIUM AMERICAS INC (LAC) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LAC was recently trading at $19.07 and has an implied volatility of 40.20% for this period. Based on an analysis of the options available for LAC expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $19.19-$21.91 at expiration. In this scenario, the average linear return for the trade would be 10.26%.
Big 7.01% Change: After closing the last trading session at $17.82, LITHIUM AMERICAS INC opened today at $18.42 and has reached a high of $19.19.
Trade approach: A movement as big as 7.01% is a significantly bullish indicator, so this trade is designed to be profitable if LAC maintains its current direction and does not revert back to pricing on the bearish side of $19.07 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 LITHIUM AMERICAS INC closes at or above $18.70 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 57.72% 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.