Quantchabot has detected a new Bull Call Spread trade opportunity for 599538 (SKE) for the 21-Mar-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SKE was recently trading at $10.33 and has an implied volatility of 64.04% for this period. Based on an analysis of the options available for SKE expiring on 21-Mar-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $10.39-$13.03 at expiration. In this scenario, the average linear return for the trade would be 16.28%.
52 week high: 599538 recently reached a new 52-week high at $10.35. SKE had traded in the range $3.29-$10.33 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 SKE maintains its current direction and does not revert back to pricing on the bearish side of $10.33 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 599538 closes at or above $9.65 on 21-Mar-2025. Based on our risk-neutral analysis, there is a 62.78% 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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