Quantchabot has detected a new Bull Call Spread trade opportunity for MP MATERIALS CORP (MP) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MP was recently trading at $20.89 and has an implied volatility of 61.32% for this period. Based on an analysis of the options available for MP expiring on 17-Jan-2025, there is a 34.35% likelihood that the underlying will close within the analyzed range of $20.92-$23.34 at expiration. In this scenario, the average linear return for the trade would be 11.72%.
Big 14.78% Change: After closing the last trading session at $18.20, MP MATERIALS CORP opened today at $19.25 and has reached a high of $21.14.
Trade approach: A movement as big as 14.78% is a significantly bullish indicator, so this trade is designed to be profitable if MP maintains its current direction and does not revert back to pricing on the bearish side of $20.89 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 MP MATERIALS CORP closes at or above $20.65 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 54.76% 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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