Quantchabot has detected a new Bull Call Spread trade opportunity for EBAY (EBAY) for the 14-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EBAY was recently trading at $69.84 and has an implied volatility of 29.86% for this period. Based on an analysis of the options available for EBAY expiring on 14-Feb-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $70.17-$77.24 at expiration. In this scenario, the average linear return for the trade would be 10.62%.
52 week high: EBAY recently reached a new 52-week high at $71.52. EBAY had traded in the range $40.16-$67.80 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 EBAY maintains its current direction and does not revert back to pricing on the bearish side of $69.84 on 14-Feb-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 EBAY closes at or above $68.08 on 14-Feb-2025. Based on our risk-neutral analysis, there is a 62.40% 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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