Big Gainer Alert: Trading today’s 8.3% move in RINGCENTRAL INC. $RNG

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Quantchabot has detected a promising Bull Call Spread trade opportunity for RINGCENTRAL INC. (RNG) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

RNG was recently trading at $230.26 and has an implied volatility of 33.80% for this period. Based on an analysis of the options available for RNG expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $230.96-$266.68 at expiration. In this scenario, the average linear return for the trade would be 47.97%.

Big 8.30% Change: After closing the last trading session at $212.61, RINGCENTRAL INC. opened today at $228.40 and has reached a high of $233.81.

Trade approach: A movement as big as 8.30% is a significantly bullish indicator, so this trade is designed to be profitable if RNG maintains its current direction and does not revert back to pricing on the bearish side of $230.26 on 17-Apr-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 RINGCENTRAL INC. closes at or above $229.30 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 52.01% 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.