Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for PINTEREST INC (PINS) for the 27-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PINS was recently trading at $25.68 and has an implied volatility of 53.86% for this period. Based on an analysis of the options available for PINS expiring on 27-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $25.74-$31.54 at expiration. In this scenario, the average linear return for the trade would be 55.66%.
Big 11.60% Change: After closing the last trading session at $23.01, PINTEREST INC opened today at $26.99 and has reached a high of $27.25.
Trade approach: A movement as big as 11.60% is a significantly bullish indicator, so this trade is designed to be profitable if PINS maintains its current direction and does not revert back to pricing on the bearish side of $25.68 on 27-Mar-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 PINTEREST INC closes at or above $25.10 on 27-Mar-2020. Based on our risk-neutral analysis, there is a 54.91% 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.