Quantchabot has detected a new Bull Call Spread trade opportunity for SEMTECH (SMTC) for the 15-Aug-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SMTC was recently trading at $52.40 and has an implied volatility of 56.72% for this period. Based on an analysis of the options available for SMTC expiring on 15-Aug-2025, there is a 34.71% likelihood that the underlying will close within the analyzed range of $52.42-$55.49 at expiration. In this scenario, the average linear return for the trade would be 16.01%.
Big 7.91% Change: After closing the last trading session at $48.56, SEMTECH opened today at $49.31 and has reached a high of $52.40.
Trade approach: A movement as big as 7.91% is a significantly bullish indicator, so this trade is designed to be profitable if SMTC maintains its current direction and does not revert back to pricing on the bearish side of $52.40 on 15-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 SEMTECH closes at or above $52.30 on 15-Aug-2025. Based on our risk-neutral analysis, there is a 51.69% 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.