Quantchabot has detected a promising Covered Call trade opportunity for U POWER LIMITED (UCAR) for the 24-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UCAR was recently trading at $3.21 and has an implied volatility of 713.26% for this period. Based on an analysis of the options available for UCAR expiring on 24-Nov-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $3.23-$30.05 at expiration. In this scenario, the average linear return for the trade would be 48.44%.
Big 7.17% Change: After closing the last trading session at $3.00, U POWER LIMITED opened today at $2.97 and has reached a high of $3.28.
Trade approach: A movement as big as 7.17% is a significantly bullish indicator, so this trade is designed to be profitable if UCAR maintains its current direction and does not revert back to pricing on the bearish side of $3.21 on 24-Nov-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 U POWER LIMITED closes at or above $3.20 on 24-Nov-2023. Based on our risk-neutral analysis, there is a 50.18% 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.