Quantchabot has detected a new Covered Call trade opportunity for PURECYCLE TECHNOLOGIES INC. (PCT) for the 28-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PCT was recently trading at $9.10 and has an implied volatility of 146.79% for this period. Based on an analysis of the options available for PCT expiring on 28-Feb-2025, there is a 34.24% likelihood that the underlying will close within the analyzed range of $9.13-$13.27 at expiration. In this scenario, the average linear return for the trade would be 10.64%.
Big 7.18% Change: After closing the last trading session at $8.49, PURECYCLE TECHNOLOGIES INC. opened today at $8.67 and has reached a high of $9.30.
Trade approach: A movement as big as 7.18% is a significantly bullish indicator, so this trade is designed to be profitable if PCT maintains its current direction and does not revert back to pricing on the bearish side of $9.10 on 28-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 PURECYCLE TECHNOLOGIES INC. closes at or above $8.92 on 28-Feb-2025. Based on our risk-neutral analysis, there is a 52.44% 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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