Quantchabot has detected a new Covered Call trade opportunity for IHEARTMEDIA INC (IHRT) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IHRT was recently trading at $2.08 and has an implied volatility of 95.21% for this period. Based on an analysis of the options available for IHRT expiring on 21-Feb-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $2.09-$3.08 at expiration. In this scenario, the average linear return for the trade would be 23.69%.
Big 10.37% Change: After closing the last trading session at $1.88, IHEARTMEDIA INC opened today at $1.91 and has reached a high of $2.17.
Trade approach: A movement as big as 10.37% is a significantly bullish indicator, so this trade is designed to be profitable if IHRT maintains its current direction and does not revert back to pricing on the bearish side of $2.08 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 IHEARTMEDIA INC closes at or above $1.93 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 58.18% 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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