Quantchabot has detected a promising Bull Call Spread trade opportunity for IONQ INC (IONQ) for the 27-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IONQ was recently trading at $21.48 and has an implied volatility of 102.71% for this period. Based on an analysis of the options available for IONQ expiring on 27-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $21.64-$31.13 at expiration. In this scenario, the average linear return for the trade would be 10.12%.
Big 9.17% Change: After closing the last trading session at $19.68, IONQ INC opened today at $19.21 and has reached a high of $21.48.
Trade approach: A movement as big as 9.17% is a significantly bullish indicator, so this trade is designed to be profitable if IONQ maintains its current direction and does not revert back to pricing on the bearish side of $21.48 on 27-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 IONQ INC closes at or above $19.30 on 27-Oct-2023. Based on our risk-neutral analysis, there is a 62.37% 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.