Quantchabot has detected a new Bull Call Spread trade opportunity for MICROSTRATEGY (MSTR) for the 31-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MSTR was recently trading at $364.03 and has an implied volatility of 102.07% for this period. Based on an analysis of the options available for MSTR expiring on 31-Jan-2025, there is a 34.23% likelihood that the underlying will close within the analyzed range of $365.19-$478.66 at expiration. In this scenario, the average linear return for the trade would be 10.49%.
Big 7.17% Change: After closing the last trading session at $339.66, MICROSTRATEGY opened today at $349.85 and has reached a high of $364.99.
Trade approach: A movement as big as 7.17% is a significantly bullish indicator, so this trade is designed to be profitable if MSTR maintains its current direction and does not revert back to pricing on the bearish side of $364.03 on 31-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 MICROSTRATEGY closes at or above $316.99 on 31-Jan-2025. Based on our risk-neutral analysis, there is a 70.03% 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.
Leave a Reply
You must be logged in to post a comment.