Quantchabot has detected a new Bull Call Spread trade opportunity for SOMNIGROUP INTERNATIONAL INC (SGI) for the 18-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SGI was recently trading at $69.88 and has an implied volatility of 27.10% for this period. Based on an analysis of the options available for SGI expiring on 18-Jul-2025, there is a 34.25% likelihood that the underlying will close within the analyzed range of $70.03-$74.33 at expiration. In this scenario, the average linear return for the trade would be 13.64%.
52 week high: SOMNIGROUP INTERNATIONAL INC recently reached a new 52-week high at $69.92. SGI had traded in the range $45.04-$69.87 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if SGI maintains its current direction and does not revert back to pricing on the bearish side of $69.88 on 18-Jul-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 SOMNIGROUP INTERNATIONAL INC closes at or above $69.40 on 18-Jul-2025. Based on our risk-neutral analysis, there is a 56.02% 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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