Quantchabot has detected a new Bull Call Spread trade opportunity for XP INC. CL A (XP) for the 16-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
XP was recently trading at $17.53 and has an implied volatility of 62.60% for this period. Based on an analysis of the options available for XP expiring on 16-May-2025, there is a 34.37% likelihood that the underlying will close within the analyzed range of $17.55-$19.32 at expiration. In this scenario, the average linear return for the trade would be 17.13%.
Big 10.67% Change: After closing the last trading session at $15.84, XP INC. CL A opened today at $16.18 and has reached a high of $17.53.
Trade approach: A movement as big as 10.67% is a significantly bullish indicator, so this trade is designed to be profitable if XP maintains its current direction and does not revert back to pricing on the bearish side of $17.53 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 XP INC. CL A closes at or above $17.50 on 16-May-2025. Based on our risk-neutral analysis, there is a 51.15% 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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