Quantchabot has detected a new Bull Call Spread trade opportunity for UNITED MICROELECTRONICS (UMC) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UMC was recently trading at $7.33 and has an implied volatility of 54.34% for this period. Based on an analysis of the options available for UMC expiring on 17-Apr-2025, there is a 34.25% likelihood that the underlying will close within the analyzed range of $7.34-$8.27 at expiration. In this scenario, the average linear return for the trade would be 33.05%.
Big 11.83% Change: After closing the last trading session at $6.55, UNITED MICROELECTRONICS opened today at $6.58 and has reached a high of $7.87.
Trade approach: A movement as big as 11.83% is a significantly bullish indicator, so this trade is designed to be profitable if UMC maintains its current direction and does not revert back to pricing on the bearish side of $7.33 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 UNITED MICROELECTRONICS closes at or above $7.30 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 51.87% 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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