Quantchabot has detected a new Bull Call Spread trade opportunity for WOLFSPEED INC (WOLF) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WOLF was recently trading at $2.96 and has an implied volatility of 137.70% for this period. Based on an analysis of the options available for WOLF expiring on 25-Apr-2025, there is a 35.42% likelihood that the underlying will close within the analyzed range of $2.96-$3.24 at expiration. In this scenario, the average linear return for the trade would be 14.36%.
Big 14.98% Change: After closing the last trading session at $2.57, WOLFSPEED INC opened today at $2.62 and has reached a high of $3.02.
Trade approach: A movement as big as 14.98% is a significantly bullish indicator, so this trade is designed to be profitable if WOLF maintains its current direction and does not revert back to pricing on the bearish side of $2.96 on 25-Apr-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 WOLFSPEED INC closes at or above $2.87 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 63.05% 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.