Quantchabot has detected a new Bull Call Spread trade opportunity for AMERICAN INTERNATIONAL (AIG) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AIG was recently trading at $83.87 and has an implied volatility of 23.99% for this period. Based on an analysis of the options available for AIG expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $84.28-$91.22 at expiration. In this scenario, the average linear return for the trade would be 10.73%.
52 week high: AMERICAN INTERNATIONAL recently reached a new 52-week high at $84.29. AIG had traded in the range $69.00-$83.77 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 AIG maintains its current direction and does not revert back to pricing on the bearish side of $83.87 on 25-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 AMERICAN INTERNATIONAL closes at or above $83.60 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 54.07% 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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