Quantchabot has detected a new Bull Call Spread trade opportunity for URBAN OUTFITTERS (URBN) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
URBN was recently trading at $55.99 and has an implied volatility of 35.07% for this period. Based on an analysis of the options available for URBN expiring on 21-Feb-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $56.39-$64.83 at expiration. In this scenario, the average linear return for the trade would be 17.13%.
52 week high: URBAN OUTFITTERS recently reached a new 52-week high at $56.04. URBN had traded in the range $33.86-$55.98 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 URBN maintains its current direction and does not revert back to pricing on the bearish side of $55.99 on 21-Feb-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 URBAN OUTFITTERS closes at or above $55.55 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 54.30% 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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