Quantchabot has detected a new Bull Call Spread trade opportunity for TAIWAN SEMICONDUCTOR (TSM) for the 10-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TSM was recently trading at $217.73 and has an implied volatility of 38.63% for this period. Based on an analysis of the options available for TSM expiring on 10-Jan-2025, there is a 34.67% likelihood that the underlying will close within the analyzed range of $217.86-$227.70 at expiration. In this scenario, the average linear return for the trade would be 10.56%.
52 week high: TAIWAN SEMICONDUCTOR recently reached a new 52-week high at $221.84. TSM had traded in the range $98.80-$212.60 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 TSM maintains its current direction and does not revert back to pricing on the bearish side of $217.73 on 10-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 TAIWAN SEMICONDUCTOR closes at or above $216.80 on 10-Jan-2025. Based on our risk-neutral analysis, there is a 54.47% 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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