Quantchabot has detected a new Bull Call Spread trade opportunity for QUANTUMSCAPE CORP (QS) for the 7-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
QS was recently trading at $5.56 and has an implied volatility of 84.64% for this period. Based on an analysis of the options available for QS expiring on 7-Feb-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $5.59-$7.31 at expiration. In this scenario, the average linear return for the trade would be 12.90%.
Big 7.16% Change: After closing the last trading session at $5.19, QUANTUMSCAPE CORP opened today at $5.25 and has reached a high of $5.62.
Trade approach: A movement as big as 7.16% is a significantly bullish indicator, so this trade is designed to be profitable if QS maintains its current direction and does not revert back to pricing on the bearish side of $5.56 on 7-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 QUANTUMSCAPE CORP closes at or above $5.10 on 7-Feb-2025. Based on our risk-neutral analysis, there is a 63.32% 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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