Quantchabot has detected a promising Bull Call Spread trade opportunity for RYDER SYSTEM (R) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
R was recently trading at $103.99 and has an implied volatility of 20.39% for this period. Based on an analysis of the options available for R expiring on 20-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $104.52-$111.08 at expiration. In this scenario, the average linear return for the trade would be 12.05%.
52 week high: RYDER SYSTEM recently reached a new 52-week high at $104.21. R had traded in the range $65.69-$103.81 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 R maintains its current direction and does not revert back to pricing on the bearish side of $103.99 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 RYDER SYSTEM closes at or above $104.50 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.09% 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.