Quantchabot has detected a promising Bull Call Spread trade opportunity for UNDER ARMOUR (UAA) for the 19-Jan-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UAA was recently trading at $7.50 and has an implied volatility of 49.41% for this period. Based on an analysis of the options available for UAA expiring on 19-Jan-2024, there is a 34.15% likelihood that the underlying will close within the analyzed range of $7.61-$9.78 at expiration. In this scenario, the average linear return for the trade would be 16.01%.
Big 7.07% Change: After closing the last trading session at $7.00, UNDER ARMOUR opened today at $6.97 and has reached a high of $7.54.
Trade approach: A movement as big as 7.07% is a significantly bullish indicator, so this trade is designed to be profitable if UAA maintains its current direction and does not revert back to pricing on the bearish side of $7.50 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 UNDER ARMOUR closes at or above $6.81 on 19-Jan-2024. Based on our risk-neutral analysis, there is a 67.03% 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.