Quantchabot has detected a new Bull Call Spread trade opportunity for AMERICAN EAGLE (AEO) for the 21-Nov-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AEO was recently trading at $19.68 and has an implied volatility of 54.28% for this period. Based on an analysis of the options available for AEO expiring on 21-Nov-2025, there is a 34.16% likelihood that the underlying will close within the analyzed range of $19.84-$25.07 at expiration. In this scenario, the average linear return for the trade would be 12.18%.
Big 7.33% Change: After closing the last trading session at $18.34, AMERICAN EAGLE opened today at $18.23 and has reached a high of $19.75.
Trade approach: A movement as big as 7.33% is a significantly bullish indicator, so this trade is designed to be profitable if AEO maintains its current direction and does not revert back to pricing on the bearish side of $19.68 on 21-Nov-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 AMERICAN EAGLE closes at or above $18.15 on 21-Nov-2025. Based on our risk-neutral analysis, there is a 64.89% 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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