Quantchabot has detected a promising Bull Call Spread trade opportunity for NETFLIX (NFLX) for the 15-Dec-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NFLX was recently trading at $398.89 and has an implied volatility of 32.96% for this period. Based on an analysis of the options available for NFLX expiring on 15-Dec-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $402.52-$458.90 at expiration. In this scenario, the average linear return for the trade would be 10.53%.
Big 15.22% Change: After closing the last trading session at $346.19, NETFLIX opened today at $404.74 and has reached a high of $408.95.
Trade approach: A movement as big as 15.22% is a significantly bullish indicator, so this trade is designed to be profitable if NFLX maintains its current direction and does not revert back to pricing on the bearish side of $398.89 on 15-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 NETFLIX closes at or above $385.59 on 15-Dec-2023. Based on our risk-neutral analysis, there is a 62.86% 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.