Quantchabot has detected a promising Bull Call Spread trade opportunity for CROWDSTRIKE HOLDINGS INC. CLASS A (CRWD) for the 1-Dec-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CRWD was recently trading at $189.45 and has an implied volatility of 44.53% for this period. Based on an analysis of the options available for CRWD expiring on 1-Dec-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $190.75-$222.54 at expiration. In this scenario, the average linear return for the trade would be 11.90%.
52 week high: CROWDSTRIKE HOLDINGS INC. CLASS A recently reached a new 52-week high at $191.99. CRWD had traded in the range $92.25-$190.36 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if CRWD maintains its current direction and does not revert back to pricing on the bearish side of $189.45 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 CROWDSTRIKE HOLDINGS INC. CLASS A closes at or above $179.90 on 1-Dec-2023. Based on our risk-neutral analysis, there is a 64.83% 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.