Quantchabot has detected a new Bull Call Spread trade opportunity for HONDA MOTOR (HMC) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HMC was recently trading at $27.09 and has an implied volatility of 32.08% for this period. Based on an analysis of the options available for HMC expiring on 17-Jan-2025, there is a 34.23% likelihood that the underlying will close within the analyzed range of $27.18-$29.60 at expiration. In this scenario, the average linear return for the trade would be 19.81%.
Big 13.39% Change: After closing the last trading session at $23.89, HONDA MOTOR opened today at $27.33 and has reached a high of $27.49.
Trade approach: A movement as big as 13.39% is a significantly bullish indicator, so this trade is designed to be profitable if HMC maintains its current direction and does not revert back to pricing on the bearish side of $27.09 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 HONDA MOTOR closes at or above $26.65 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 59.10% 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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