Quantchabot has detected a new Bull Call Spread trade opportunity for RED CAT HOLDINGS INC. COMMON STOCK (RCAT) for the 12-Dec-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RCAT was recently trading at $6.96 and has an implied volatility of 105.63% for this period. Based on an analysis of the options available for RCAT expiring on 12-Dec-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $6.97-$8.85 at expiration. In this scenario, the average linear return for the trade would be 11.10%.
Big 9.36% Change: After closing the last trading session at $6.36, RED CAT HOLDINGS INC. COMMON STOCK opened today at $6.47 and has reached a high of $6.97.
Trade approach: A movement as big as 9.36% is a significantly bullish indicator, so this trade is designed to be profitable if RCAT maintains its current direction and does not revert back to pricing on the bearish side of $6.96 on 12-Dec-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 RED CAT HOLDINGS INC. COMMON STOCK closes at or above $6.50 on 12-Dec-2025. Based on our risk-neutral analysis, there is a 61.55% 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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