Quantchabot has detected a new Bull Call Spread trade opportunity for APPLIED OPTOELECTRONICS INC. (AAOI) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AAOI was recently trading at $36.03 and has an implied volatility of 106.35% for this period. Based on an analysis of the options available for AAOI expiring on 17-Jan-2025, there is a 34.22% likelihood that the underlying will close within the analyzed range of $36.16-$48.70 at expiration. In this scenario, the average linear return for the trade would be 12.46%.
Big 11.24% Change: After closing the last trading session at $32.39, APPLIED OPTOELECTRONICS INC. opened today at $32.00 and has reached a high of $37.58.
Trade approach: A movement as big as 11.24% is a significantly bullish indicator, so this trade is designed to be profitable if AAOI maintains its current direction and does not revert back to pricing on the bearish side of $36.03 on 17-Jan-2025. 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 OPTOELECTRONICS INC. closes at or above $35.15 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 53.79% 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.
Leave a Reply
You must be logged in to post a comment.