52-Week High Alert: Trading today’s movement in ON HOLDING AG $ONON

Quantchabot has detected a new Bull Call Spread trade opportunity for ON HOLDING AG (ONON) for the 26-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ONON was recently trading at $43.72 and has an implied volatility of 35.75% for this period. Based on an analysis of the options available for ONON expiring on 26-Jul-2024, there is a 34.18% likelihood that the underlying will close within the analyzed range of $44.03-$49.97 at expiration. In this scenario, the average linear return for the trade would be 14.63%.

52 week high: ON HOLDING AG recently reached a new 52-week high at $44.21. ONON had traded in the range $23.41-$43.54 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 ONON maintains its current direction and does not revert back to pricing on the bearish side of $43.72 on 26-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 ON HOLDING AG closes at or above $42.36 on 26-Jul-2024. Based on our risk-neutral analysis, there is a 62.01% 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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