Quantchabot has detected a new Bull Call Spread trade opportunity for LUCID GROUP INC (LCID) for the 31-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LCID was recently trading at $2.89 and has an implied volatility of 93.61% for this period. Based on an analysis of the options available for LCID expiring on 31-Jan-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $2.90-$4.00 at expiration. In this scenario, the average linear return for the trade would be 11.83%.
Big 9.85% Change: After closing the last trading session at $2.63, LUCID GROUP INC opened today at $2.59 and has reached a high of $2.92.
Trade approach: A movement as big as 9.85% is a significantly bullish indicator, so this trade is designed to be profitable if LCID maintains its current direction and does not revert back to pricing on the bearish side of $2.89 on 31-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 LUCID GROUP INC closes at or above $2.73 on 31-Jan-2025. Based on our risk-neutral analysis, there is a 57.68% 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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