Quantchabot has detected a promising Bull Call Spread trade opportunity for GEO GROUP (GEO) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GEO was recently trading at $7.57 and has an implied volatility of 40.29% for this period. Based on an analysis of the options available for GEO expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $7.61-$8.69 at expiration. In this scenario, the average linear return for the trade would be 27.63%.
Big 7.15% Change: After closing the last trading session at $7.06, GEO GROUP opened today at $7.10 and has reached a high of $7.59.
Trade approach: A movement as big as 7.15% is a significantly bullish indicator, so this trade is designed to be profitable if GEO maintains its current direction and does not revert back to pricing on the bearish side of $7.57 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 GEO GROUP closes at or above $7.50 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 54.44% 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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