Quantchabot has detected a promising Bull Call Spread trade opportunity for ACM RESEARCH INC. CLASS A COMMON STOCK (ACMR) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ACMR was recently trading at $20.64 and has an implied volatility of 91.18% for this period. Based on an analysis of the options available for ACMR expiring on 20-Oct-2023, there is a 34.69% likelihood that the underlying will close within the analyzed range of $20.65-$22.64 at expiration. In this scenario, the average linear return for the trade would be 15.72%.
Big 10.79% Change: After closing the last trading session at $18.63, ACM RESEARCH INC. CLASS A COMMON STOCK opened today at $18.31 and has reached a high of $20.72.
Trade approach: A movement as big as 10.79% is a significantly bullish indicator, so this trade is designed to be profitable if ACMR maintains its current direction and does not revert back to pricing on the bearish side of $20.64 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 ACM RESEARCH INC. CLASS A COMMON STOCK closes at or above $20.65 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.03% 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.