Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Call Spread trade opportunity for WAYFAIR INC (W) for the 23-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

W was recently trading at $316.75 and has an implied volatility of 68.36% for this period. Based on an analysis of the options available for W expiring on 23-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $316.79-$404.18 at expiration. In this scenario, the average linear return for the trade would be 52.77%.

Big 7.13% Change: After closing the last trading session at $295.66, WAYFAIR INC opened today at $298.01 and has reached a high of $322.76.

Trade approach: A movement as big as 7.13% is a significantly bullish indicator, so this trade is designed to be profitable if W maintains its current direction and does not revert back to pricing on the bearish side of $316.75 on 23-Apr-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 WAYFAIR INC closes at or above $316.20 on 23-Apr-2021. Based on our risk-neutral analysis, there is a 50.31% 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.