Quantchabot has detected a new Bull Call Spread trade opportunity for HEALTHEQUITY INC. COMMON STOC (HQY) for the 21-Mar-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HQY was recently trading at $110.73 and has an implied volatility of 36.06% for this period. Based on an analysis of the options available for HQY expiring on 21-Mar-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $111.37-$126.70 at expiration. In this scenario, the average linear return for the trade would be 10.85%.
52 week high: HEALTHEQUITY INC. COMMON STOC recently reached a new 52-week high at $112.53. HQY had traded in the range $65.01-$111.58 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 HQY maintains its current direction and does not revert back to pricing on the bearish side of $110.73 on 21-Mar-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 HEALTHEQUITY INC. COMMON STOC closes at or above $111.05 on 21-Mar-2025. Based on our risk-neutral analysis, there is a 50.88% 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.