Quantchabot has detected a promising Bull Call Spread trade opportunity for VF (VFC) for the 27-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VFC was recently trading at $17.83 and has an implied volatility of 61.03% for this period. Based on an analysis of the options available for VFC expiring on 27-Oct-2023, there is a 34.32% likelihood that the underlying will close within the analyzed range of $17.86-$19.83 at expiration. In this scenario, the average linear return for the trade would be 10.45%.
Big 10.13% Change: After closing the last trading session at $16.19, VF opened today at $16.15 and has reached a high of $17.91.
Trade approach: A movement as big as 10.13% is a significantly bullish indicator, so this trade is designed to be profitable if VFC maintains its current direction and does not revert back to pricing on the bearish side of $17.83 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 VF closes at or above $17.70 on 27-Oct-2023. Based on our risk-neutral analysis, there is a 53.44% 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.