Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for GODADDY INC (GDDY) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GDDY was recently trading at $77.44 and has an implied volatility of 28.28% for this period. Based on an analysis of the options available for GDDY expiring on 20-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $77.56-$84.46 at expiration. In this scenario, the average linear return for the trade would be 38.15%.
Big 9.27% Change: After closing the last trading session at $70.87, GODADDY INC opened today at $75.13 and has reached a high of $78.52.
Trade approach: A movement as big as 9.27% is a significantly bullish indicator, so this trade is designed to be profitable if GDDY maintains its current direction and does not revert back to pricing on the bearish side of $77.44 on 20-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 GODADDY INC closes at or above $77.55 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 50.09% 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.