Quantchabot has detected a promising Bull Call Spread trade opportunity for CASEY’S GENERAL STORES (CASY) for the 17-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CASY was recently trading at $263.46 and has an implied volatility of 17.53% for this period. Based on an analysis of the options available for CASY expiring on 17-Nov-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $265.78-$286.46 at expiration. In this scenario, the average linear return for the trade would be 10.04%.
Big 10.05% Change: After closing the last trading session at $239.40, CASEY’S GENERAL STORES opened today at $255.92 and has reached a high of $265.88.
Trade approach: A movement as big as 10.05% is a significantly bullish indicator, so this trade is designed to be profitable if CASY maintains its current direction and does not revert back to pricing on the bearish side of $263.46 on 17-Nov-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 CASEY’S GENERAL STORES closes at or above $264.10 on 17-Nov-2023. Based on our risk-neutral analysis, there is a 53.36% 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.