Quantchabot has detected a promising Bull Call Spread trade opportunity for FAIR ISAAC (FICO) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FICO was recently trading at $915.21 and has an implied volatility of 31.67% for this period. Based on an analysis of the options available for FICO expiring on 19-Jan-2024, there is a 34.15% likelihood that the underlying will close within the analyzed range of $929.01-$1,091.64 at expiration. In this scenario, the average linear return for the trade would be 11.43%.
52 week high: FAIR ISAAC recently reached a new 52-week high at $919.72. FICO had traded in the range $398.56-$916.41 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 FICO maintains its current direction and does not revert back to pricing on the bearish side of $915.21 on 19-Jan-2024. 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 FAIR ISAAC closes at or above $864.61 on 19-Jan-2024. Based on our risk-neutral analysis, there is a 67.20% 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.