Quantchabot has detected a new Bull Call Spread trade opportunity for NEXTRACKER INC. CLASS A (NXT) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NXT was recently trading at $42.61 and has an implied volatility of 48.93% for this period. Based on an analysis of the options available for NXT expiring on 17-Jan-2025, there is a 34.35% likelihood that the underlying will close within the analyzed range of $42.67-$46.58 at expiration. In this scenario, the average linear return for the trade would be 16.26%.
Big 7.52% Change: After closing the last trading session at $39.63, NEXTRACKER INC. CLASS A opened today at $40.75 and has reached a high of $42.68.
Trade approach: A movement as big as 7.52% is a significantly bullish indicator, so this trade is designed to be profitable if NXT maintains its current direction and does not revert back to pricing on the bearish side of $42.61 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 NEXTRACKER INC. CLASS A closes at or above $42.20 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 55.09% 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.
Leave a Reply
You must be logged in to post a comment.