Big Gainer Alert: Trading today’s 10.2% move in EXPEDIA $EXPE

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

EXPE was recently trading at $121.92 and has an implied volatility of 25.74% for this period. Based on an analysis of the options available for EXPE expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $122.27-$136.55 at expiration. In this scenario, the average linear return for the trade would be 58.53%.

Big 10.24% Change: After closing the last trading session at $110.59, EXPEDIA opened today at $124.05 and has reached a high of $124.74.

Trade approach: A movement as big as 10.24% is a significantly bullish indicator, so this trade is designed to be profitable if EXPE maintains its current direction and does not revert back to pricing on the bearish side of $121.92 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 EXPEDIA closes at or above $121.10 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 53.46% 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.