Quantchabot has detected a new Bull Call Spread trade opportunity for KRATOS DEFENSE & SECURITY (KTOS) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KTOS was recently trading at $29.89 and has an implied volatility of 41.49% for this period. Based on an analysis of the options available for KTOS expiring on 17-Jan-2025, there is a 34.35% likelihood that the underlying will close within the analyzed range of $29.93-$32.23 at expiration. In this scenario, the average linear return for the trade would be 10.27%.
52 week high: KRATOS DEFENSE & SECURITY recently reached a new 52-week high at $29.96. KTOS had traded in the range $16.71-$28.71 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 KTOS maintains its current direction and does not revert back to pricing on the bearish side of $29.89 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 KRATOS DEFENSE & SECURITY closes at or above $29.30 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 61.45% 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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