Quantchabot has detected a new Bull Call Spread trade opportunity for ROCKET LAB USA INC. COMMON STOCK (RKLB) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RKLB was recently trading at $29.27 and has an implied volatility of 96.26% for this period. Based on an analysis of the options available for RKLB expiring on 21-Feb-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $29.45-$41.54 at expiration. In this scenario, the average linear return for the trade would be 12.45%.
52 week high: ROCKET LAB USA INC. COMMON STOCK recently reached a new 52-week high at $30.26. RKLB had traded in the range $3.47-$28.80 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 RKLB maintains its current direction and does not revert back to pricing on the bearish side of $29.27 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 ROCKET LAB USA INC. COMMON STOCK closes at or above $27.45 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 58.09% 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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