Quantchabot has detected a promising Bull Call Spread trade opportunity for INTEL (INTC) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
INTC was recently trading at $39.81 and has an implied volatility of 34.20% for this period. Based on an analysis of the options available for INTC expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $40.06-$44.78 at expiration. In this scenario, the average linear return for the trade would be 10.02%.
52 week high: INTEL recently reached a new 52-week high at $40.07. INTC had traded in the range $24.59-$38.83 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if INTC maintains its current direction and does not revert back to pricing on the bearish side of $39.81 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 INTEL closes at or above $39.30 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 56.79% 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.