Quantchabot has detected a promising Bull Call Spread trade opportunity for TESLA INC. (TSLA) for the 13-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TSLA was recently trading at $265.97 and has an implied volatility of 48.09% for this period. Based on an analysis of the options available for TSLA expiring on 13-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $267.33-$308.71 at expiration. In this scenario, the average linear return for the trade would be 10.09%.
Big 7.03% Change: After closing the last trading session at $248.50, TESLA INC. opened today at $264.27 and has reached a high of $266.12.
Trade approach: A movement as big as 7.03% is a significantly bullish indicator, so this trade is designed to be profitable if TSLA maintains its current direction and does not revert back to pricing on the bearish side of $265.97 on 13-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 TESLA INC. closes at or above $260.90 on 13-Oct-2023. Based on our risk-neutral analysis, there is a 56.72% 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.