Quantchabot has detected a promising Bull Call Spread trade opportunity for HUT 8 MINING CORP. COMMON SHARES (HUT) for the 3-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HUT was recently trading at $1.95 and has an implied volatility of 95.98% for this period. Based on an analysis of the options available for HUT expiring on 3-Nov-2023, there is a 34.27% likelihood that the underlying will close within the analyzed range of $1.95-$2.36 at expiration. In this scenario, the average linear return for the trade would be 10.77%.
Big 8.66% Change: After closing the last trading session at $1.79, HUT 8 MINING CORP. COMMON SHARES opened today at $1.89 and has reached a high of $1.99.
Trade approach: A movement as big as 8.66% is a significantly bullish indicator, so this trade is designed to be profitable if HUT maintains its current direction and does not revert back to pricing on the bearish side of $1.95 on 3-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 HUT 8 MINING CORP. COMMON SHARES closes at or above $1.85 on 3-Nov-2023. Based on our risk-neutral analysis, there is a 60.77% 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.