Quantchabot has detected a new Bull Call Spread trade opportunity for LUMENTUM HOLDINGS INC (LITE) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LITE was recently trading at $62.32 and has an implied volatility of 73.88% for this period. Based on an analysis of the options available for LITE expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $62.61-$79.37 at expiration. In this scenario, the average linear return for the trade would be 11.94%.
Big 8.55% Change: After closing the last trading session at $57.41, LUMENTUM HOLDINGS INC opened today at $59.51 and has reached a high of $63.54.
Trade approach: A movement as big as 8.55% is a significantly bullish indicator, so this trade is designed to be profitable if LITE maintains its current direction and does not revert back to pricing on the bearish side of $62.32 on 17-Apr-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 LUMENTUM HOLDINGS INC closes at or above $57.60 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 63.76% 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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