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Quantchabot has detected a promising Bull Call Spread trade opportunity for HIMS AND HERS HEALTH INC (HIMS) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HIMS was recently trading at $8.20 and has an implied volatility of 85.39% for this period. Based on an analysis of the options available for HIMS expiring on 19-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $8.20-$10.27 at expiration. In this scenario, the average linear return for the trade would be 31.99%.

Big 8.04% Change: After closing the last trading session at $7.59, HIMS AND HERS HEALTH INC opened today at $7.87 and has reached a high of $8.27.

Trade approach: A movement as big as 8.04% is a significantly bullish indicator, so this trade is designed to be profitable if HIMS maintains its current direction and does not revert back to pricing on the bearish side of $8.20 on 19-Nov-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 HIMS AND HERS HEALTH INC closes at or above $8.10 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 52.19% 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.