Quantchabot has detected a promising Bull Call Spread trade opportunity for SPIRIT AEROSYSTEMS HLDNGS (SPR) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SPR was recently trading at $21.44 and has an implied volatility of 95.05% for this period. Based on an analysis of the options available for SPR expiring on 20-Oct-2023, there is a 34.90% likelihood that the underlying will close within the analyzed range of $21.45-$23.29 at expiration. In this scenario, the average linear return for the trade would be 10.46%.
Big 24.72% Change: After closing the last trading session at $17.19, SPIRIT AEROSYSTEMS HLDNGS opened today at $20.83 and has reached a high of $21.99.
Trade approach: A movement as big as 24.72% is a significantly bullish indicator, so this trade is designed to be profitable if SPR maintains its current direction and does not revert back to pricing on the bearish side of $21.44 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 SPIRIT AEROSYSTEMS HLDNGS closes at or above $21.15 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 56.99% 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.