Quantchabot has detected a new Bull Call Spread trade opportunity for AMERICAN RESOURCES CORPORATION CLASS A (AREC) for the 16-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AREC was recently trading at $1.37 and has an implied volatility of 282.30% for this period. Based on an analysis of the options available for AREC expiring on 16-May-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $1.37-$3.07 at expiration. In this scenario, the average linear return for the trade would be 52.45%.
Big 23.42% Change: After closing the last trading session at $1.11, AMERICAN RESOURCES CORPORATION CLASS A opened today at $1.25 and has reached a high of $1.68.
Trade approach: A movement as big as 23.42% is a significantly bullish indicator, so this trade is designed to be profitable if AREC maintains its current direction and does not revert back to pricing on the bearish side of $1.37 on 16-May-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 RESOURCES CORPORATION CLASS A closes at or above $1.15 on 16-May-2025. Based on our risk-neutral analysis, there is a 58.81% 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.