Quantchabot has detected a new Bull Call Spread trade opportunity for ON SEMICONDUCTOR CORP (ON) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ON was recently trading at $39.44 and has an implied volatility of 59.68% for this period. Based on an analysis of the options available for ON expiring on 2-May-2025, there is a 34.37% likelihood that the underlying will close within the analyzed range of $39.48-$43.30 at expiration. In this scenario, the average linear return for the trade would be 10.55%.
Big 7.70% Change: After closing the last trading session at $36.62, ON SEMICONDUCTOR CORP opened today at $38.55 and has reached a high of $39.49.
Trade approach: A movement as big as 7.70% is a significantly bullish indicator, so this trade is designed to be profitable if ON maintains its current direction and does not revert back to pricing on the bearish side of $39.44 on 2-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 ON SEMICONDUCTOR CORP closes at or above $38.63 on 2-May-2025. Based on our risk-neutral analysis, there is a 59.42% 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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