52-Week High Alert: Trading today’s movement in APPLIED MATERIALS $AMAT

Quantchabot has detected a new Bull Call Spread trade opportunity for APPLIED MATERIALS (AMAT) for the 9-Aug-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AMAT was recently trading at $251.19 and has an implied volatility of 33.75% for this period. Based on an analysis of the options available for AMAT expiring on 9-Aug-2024, there is a 34.19% likelihood that the underlying will close within the analyzed range of $252.43-$278.84 at expiration. In this scenario, the average linear return for the trade would be 10.39%.

52 week high: APPLIED MATERIALS recently reached a new 52-week high at $251.73. AMAT had traded in the range $129.21-$249.42 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 AMAT maintains its current direction and does not revert back to pricing on the bearish side of $251.19 on 9-Aug-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 APPLIED MATERIALS closes at or above $248.15 on 9-Aug-2024. Based on our risk-neutral analysis, there is a 56.83% 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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