Quantchabot has detected a new Bull Call Spread trade opportunity for EMBRAER (ERJ) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ERJ was recently trading at $44.41 and has an implied volatility of 38.14% for this period. Based on an analysis of the options available for ERJ expiring on 21-Feb-2025, there is a 34.28% likelihood that the underlying will close within the analyzed range of $44.50-$48.29 at expiration. In this scenario, the average linear return for the trade would be 10.40%.
52 week high: EMBRAER recently reached a new 52-week high at $45.53. ERJ had traded in the range $17.19-$41.90 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 ERJ maintains its current direction and does not revert back to pricing on the bearish side of $44.41 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 EMBRAER closes at or above $43.55 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 60.52% 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.