Big Gainer Alert: Trading today’s 7.2% move in CELESTICA $CLS

Quantchabot has detected a new Bull Call Spread trade opportunity for CELESTICA (CLS) for the 19-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CLS was recently trading at $51.48 and has an implied volatility of 44.54% for this period. Based on an analysis of the options available for CLS expiring on 19-Jul-2024, there is a 34.16% likelihood that the underlying will close within the analyzed range of $52.00-$62.81 at expiration. In this scenario, the average linear return for the trade would be 11.17%.

Big 7.24% Change: After closing the last trading session at $48.00, CELESTICA opened today at $50.63 and has reached a high of $52.28.

Trade approach: A movement as big as 7.24% is a significantly bullish indicator, so this trade is designed to be profitable if CLS maintains its current direction and does not revert back to pricing on the bearish side of $51.48 on 19-Jul-2024. 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 CELESTICA closes at or above $51.95 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 50.20% 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.


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