Quantchabot has detected a new Bull Call Spread trade opportunity for ALASKA AIR GROUP (ALK) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ALK was recently trading at $65.70 and has an implied volatility of 36.42% for this period. Based on an analysis of the options available for ALK expiring on 17-Jan-2025, there is a 34.22% likelihood that the underlying will close within the analyzed range of $65.93-$73.03 at expiration. In this scenario, the average linear return for the trade would be 10.00%.
52 week high: ALASKA AIR GROUP recently reached a new 52-week high at $65.74. ALK had traded in the range $32.62-$65.62 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 ALK maintains its current direction and does not revert back to pricing on the bearish side of $65.70 on 17-Jan-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 ALASKA AIR GROUP closes at or above $64.35 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 59.43% 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.