The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for RITE AID () for the 20-Apr-2018 expiration period. You can analyze the opportunity in depth over at the .
RAD was recently trading at $2.11 and has an implied volatility of 73.56% for this period. Based on an analysis of the options available for RAD expiring on 20-Apr-2018, there is a 34.14% likelihood that the underlying will close within the analyzed range of $2.13-$3.21 at expiration. In this scenario, the average linear return for the trade would be 82.90%.
Big 7.11% Change: After closing the last trading session at $1.97, RITE AID opened today at $1.99 and has reached a high of $2.12.
Trade approach: A movement as big as 7.11% is a significantly bullish indicator, so this trade is designed to be profitable if RAD maintains its current direction and does not revert back to pricing on the bearish side of $2.11 on 20-Apr-2018. 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 RITE AID closes at or above $2.00 on 20-Apr-2018. Based on our risk-neutral analysis, there is a 56.33% 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 .
This is an automated post generated based on a market analysis of delayed data at 1/2/2018 1:17:58 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.