Quantchabot has detected a new Bull Call Spread trade opportunity for WAYFAIR INC (W) for the 31-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
W was recently trading at $46.86 and has an implied volatility of 60.23% for this period. Based on an analysis of the options available for W expiring on 31-Jan-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $47.11-$57.89 at expiration. In this scenario, the average linear return for the trade would be 12.07%.
Big 7.11% Change: After closing the last trading session at $43.75, WAYFAIR INC opened today at $43.53 and has reached a high of $46.91.
Trade approach: A movement as big as 7.11% is a significantly bullish indicator, so this trade is designed to be profitable if W maintains its current direction and does not revert back to pricing on the bearish side of $46.86 on 31-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 WAYFAIR INC closes at or above $41.60 on 31-Jan-2025. Based on our risk-neutral analysis, there is a 72.74% 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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