Quantchabot has detected a new Bull Call Spread trade opportunity for ONTO INNOVATION INC (ONTO) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ONTO was recently trading at $193.22 and has an implied volatility of 44.62% for this period. Based on an analysis of the options available for ONTO expiring on 17-Jan-2025, there is a 34.35% likelihood that the underlying will close within the analyzed range of $193.51-$209.60 at expiration. In this scenario, the average linear return for the trade would be 10.10%.
Big 7.33% Change: After closing the last trading session at $180.03, ONTO INNOVATION INC opened today at $185.79 and has reached a high of $194.25.
Trade approach: A movement as big as 7.33% is a significantly bullish indicator, so this trade is designed to be profitable if ONTO maintains its current direction and does not revert back to pricing on the bearish side of $193.22 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 ONTO INNOVATION INC closes at or above $192.60 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 52.35% 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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