Quantchabot has detected a new Bull Call Spread trade opportunity for AMBARELLA INC (AMBA) for the 30-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMBA was recently trading at $46.47 and has an implied volatility of 65.27% for this period. Based on an analysis of the options available for AMBA expiring on 30-May-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $46.68-$57.39 at expiration. In this scenario, the average linear return for the trade would be 12.15%.
Big 8.02% Change: After closing the last trading session at $43.02, AMBARELLA INC opened today at $43.82 and has reached a high of $46.62.
Trade approach: A movement as big as 8.02% is a significantly bullish indicator, so this trade is designed to be profitable if AMBA maintains its current direction and does not revert back to pricing on the bearish side of $46.47 on 30-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 AMBARELLA INC closes at or above $45.95 on 30-May-2025. Based on our risk-neutral analysis, there is a 53.03% 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.
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