Quantchabot has detected a promising Bull Call Spread trade opportunity for FUELCELL ENERGY (FCEL) for the 1-Dec-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FCEL was recently trading at $1.39 and has an implied volatility of 95.11% for this period. Based on an analysis of the options available for FCEL expiring on 1-Dec-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $1.39-$1.95 at expiration. In this scenario, the average linear return for the trade would be 17.33%.
Big 9.06% Change: After closing the last trading session at $1.27, FUELCELL ENERGY opened today at $1.25 and has reached a high of $1.40.
Trade approach: A movement as big as 9.06% is a significantly bullish indicator, so this trade is designed to be profitable if FCEL maintains its current direction and does not revert back to pricing on the bearish side of $1.39 on 1-Dec-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 FUELCELL ENERGY closes at or above $1.34 on 1-Dec-2023. Based on our risk-neutral analysis, there is a 54.76% 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.