Quantchabot has detected a new Bull Call Spread trade opportunity for CHEFS WAREHOUSE HOLDINGS (CHEF) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CHEF was recently trading at $49.71 and has an implied volatility of 32.39% for this period. Based on an analysis of the options available for CHEF expiring on 17-Jan-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $49.82-$53.51 at expiration. In this scenario, the average linear return for the trade would be 16.13%.
52 week high: CHEFS WAREHOUSE HOLDINGS recently reached a new 52-week high at $49.79. CHEF had traded in the range $27.64-$49.78 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if CHEF maintains its current direction and does not revert back to pricing on the bearish side of $49.71 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 CHEFS WAREHOUSE HOLDINGS closes at or above $49.30 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 55.86% 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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