Quantchabot has detected a new Bull Call Spread trade opportunity for ADTRAN (ADTN) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ADTN was recently trading at $10.49 and has an implied volatility of 63.39% for this period. Based on an analysis of the options available for ADTN expiring on 21-Feb-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $10.55-$13.13 at expiration. In this scenario, the average linear return for the trade would be 12.43%.
52 week high: ADTRAN recently reached a new 52-week high at $10.71. ADTN had traded in the range $4.34-$9.88 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 ADTN maintains its current direction and does not revert back to pricing on the bearish side of $10.49 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 ADTRAN closes at or above $10.40 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 52.55% 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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