Quantchabot has detected a new Bull Call Spread trade opportunity for ROCKET LAB USA INC. COMMON STOCK (RKLB) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RKLB was recently trading at $24.86 and has an implied volatility of 94.53% for this period. Based on an analysis of the options available for RKLB expiring on 21-Feb-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $25.05-$37.17 at expiration. In this scenario, the average linear return for the trade would be 17.65%.
Big 7.04% Change: After closing the last trading session at $23.22, ROCKET LAB USA INC. COMMON STOCK opened today at $22.14 and has reached a high of $24.94.
Trade approach: A movement as big as 7.04% is a significantly bullish indicator, so this trade is designed to be profitable if RKLB maintains its current direction and does not revert back to pricing on the bearish side of $24.86 on 21-Feb-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 ROCKET LAB USA INC. COMMON STOCK closes at or above $18.40 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 78.32% 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.