Quantchabot has detected a promising Bull Call Spread trade opportunity for BOWLERO CORP (BOWL) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BOWL was recently trading at $10.99 and has an implied volatility of 63.86% for this period. Based on an analysis of the options available for BOWL expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $11.06-$13.66 at expiration. In this scenario, the average linear return for the trade would be 13.97%.
Big 8.54% Change: After closing the last trading session at $10.13, BOWLERO CORP opened today at $10.76 and has reached a high of $11.59.
Trade approach: A movement as big as 8.54% is a significantly bullish indicator, so this trade is designed to be profitable if BOWL maintains its current direction and does not revert back to pricing on the bearish side of $10.99 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 BOWLERO CORP closes at or above $10.85 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 53.68% 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.