Quantchabot has detected a new Bull Call Spread trade opportunity for WARNER BROS. DISCOVERY INC. SERIES A (WBD) for the 1-Aug-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WBD was recently trading at $13.76 and has an implied volatility of 39.63% for this period. Based on an analysis of the options available for WBD expiring on 1-Aug-2025, there is a 34.58% likelihood that the underlying will close within the analyzed range of $13.76-$14.40 at expiration. In this scenario, the average linear return for the trade would be 12.03%.
52 week high: WARNER BROS. DISCOVERY INC. SERIES A recently reached a new 52-week high at $13.79. WBD had traded in the range $6.64-$13.68 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 WBD maintains its current direction and does not revert back to pricing on the bearish side of $13.76 on 1-Aug-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 WARNER BROS. DISCOVERY INC. SERIES A closes at or above $13.63 on 1-Aug-2025. Based on our risk-neutral analysis, there is a 58.68% 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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