Quantchabot has detected a new Bull Call Spread trade opportunity for SUPER MICRO COMPUTER (SMCI) for the 7-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SMCI was recently trading at $31.57 and has an implied volatility of 105.07% for this period. Based on an analysis of the options available for SMCI expiring on 7-Feb-2025, there is a 35.10% likelihood that the underlying will close within the analyzed range of $31.58-$34.59 at expiration. In this scenario, the average linear return for the trade would be 10.41%.
Big 8.25% Change: After closing the last trading session at $29.16, SUPER MICRO COMPUTER opened today at $31.03 and has reached a high of $33.12.
Trade approach: A movement as big as 8.25% is a significantly bullish indicator, so this trade is designed to be profitable if SMCI maintains its current direction and does not revert back to pricing on the bearish side of $31.57 on 7-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 SUPER MICRO COMPUTER closes at or above $31.03 on 7-Feb-2025. Based on our risk-neutral analysis, there is a 57.91% 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.