52-Week High Alert: Trading today’s movement in BRITISH AMERICAN TOBACCO $BTI

Quantchabot has detected a new Bull Call Spread trade opportunity for BRITISH AMERICAN TOBACCO (BTI) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BTI was recently trading at $40.02 and has an implied volatility of 25.72% for this period. Based on an analysis of the options available for BTI expiring on 21-Feb-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $40.11-$42.45 at expiration. In this scenario, the average linear return for the trade would be 19.40%.

52 week high: BRITISH AMERICAN TOBACCO recently reached a new 52-week high at $40.08. BTI had traded in the range $28.25-$39.85 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 BTI maintains its current direction and does not revert back to pricing on the bearish side of $40.02 on 21-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 BRITISH AMERICAN TOBACCO closes at or above $39.35 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 63.29% 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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