Quantchabot has detected a new Bull Call Spread trade opportunity for CAPRI HOLDINGS LTD (CPRI) for the 23-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CPRI was recently trading at $16.91 and has an implied volatility of 50.83% for this period. Based on an analysis of the options available for CPRI expiring on 23-May-2025, there is a 34.26% likelihood that the underlying will close within the analyzed range of $16.95-$18.83 at expiration. In this scenario, the average linear return for the trade would be 10.83%.
Big 7.19% Change: After closing the last trading session at $15.78, CAPRI HOLDINGS LTD opened today at $16.27 and has reached a high of $16.92.
Trade approach: A movement as big as 7.19% is a significantly bullish indicator, so this trade is designed to be profitable if CPRI maintains its current direction and does not revert back to pricing on the bearish side of $16.91 on 23-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 CAPRI HOLDINGS LTD closes at or above $16.66 on 23-May-2025. Based on our risk-neutral analysis, there is a 56.49% 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.