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Big Gainer Alert: Trading today’s 7.0% move in SHOALS TECHNOLOGIES GROUP INC. CLASS A COMMON STO

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Quantchabot has detected a promising Bull Call Spread trade opportunity for SHOALS TECHNOLOGIES GROUP INC. CLASS A COMMON STO (SHLS) for the 20-Aug-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SHLS was recently trading at $31.82 and has an implied volatility of 71.91% for this period. Based on an analysis of the options available for SHLS expiring on 20-Aug-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $31.82-$42.42 at expiration. In this scenario, the average linear return for the trade would be 53.53%.

Big 7.01% Change: After closing the last trading session at $29.73, SHOALS TECHNOLOGIES GROUP INC. CLASS A COMMON STO opened today at $29.89 and has reached a high of $31.85.

Trade approach: A movement as big as 7.01% is a significantly bullish indicator, so this trade is designed to be profitable if SHLS maintains its current direction and does not revert back to pricing on the bearish side of $31.82 on 20-Aug-2021. 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 SHOALS TECHNOLOGIES GROUP INC. CLASS A COMMON STO closes at or above $31.10 on 20-Aug-2021. Based on our risk-neutral analysis, there is a 53.17% 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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