Quantchabot has detected a new Bull Call Spread trade opportunity for RALPH LAUREN (RL) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RL was recently trading at $242.99 and has an implied volatility of 25.91% for this period. Based on an analysis of the options available for RL expiring on 17-Jan-2025, there is a 34.34% likelihood that the underlying will close within the analyzed range of $243.34-$254.90 at expiration. In this scenario, the average linear return for the trade would be 10.09%.
52 week high: RALPH LAUREN recently reached a new 52-week high at $243.47. RL had traded in the range $134.90-$237.16 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 RL maintains its current direction and does not revert back to pricing on the bearish side of $242.99 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 RALPH LAUREN closes at or above $242.95 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 51.38% 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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