Quantchabot has detected a new Bull Call Spread trade opportunity for E.L.F. BEAUTY INC (ELF) for the 16-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ELF was recently trading at $67.67 and has an implied volatility of 71.51% for this period. Based on an analysis of the options available for ELF expiring on 16-May-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $68.20-$91.91 at expiration. In this scenario, the average linear return for the trade would be 15.74%.
Big 7.46% Change: After closing the last trading session at $62.97, E.L.F. BEAUTY INC opened today at $66.13 and has reached a high of $68.19.
Trade approach: A movement as big as 7.46% is a significantly bullish indicator, so this trade is designed to be profitable if ELF maintains its current direction and does not revert back to pricing on the bearish side of $67.67 on 16-May-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 E.L.F. BEAUTY INC closes at or above $56.60 on 16-May-2025. Based on our risk-neutral analysis, there is a 73.42% 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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