Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Call Spread trade opportunity for MONOLITHIC POWER SYSTEMS (MPWR) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. MPWR was recently trading at $266.35 and has an implied volatility of 42.46% for this period. Based on an analysis of the options available for MPWR expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $266.38-$301.71 at expiration. In this scenario, the average linear return for the trade would be 32.51%. Big 7.57% Change: After closing the last trading session at $247.60, MONOLITHIC POWER SYSTEMS opened today at $257.18 and has reached a high of $266.92. Trade approach: A movement as big as 7.57% is a significantly bullish indicator, so this trade is designed to be profitable if MPWR maintains its current direction and does not revert back to pricing on the bearish side of $266.35 on 16-Oct-2020. 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 MONOLITHIC POWER SYSTEMS closes at or above $265.30 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 51.31% 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.