Big Gainer Alert: Trading today’s 7.1% move in GSX TECHEDU INC $GSX

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Quantchabot has detected a promising Bull Put Spread trade opportunity for GSX TECHEDU INC (GSX) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GSX was recently trading at $23.41 and has an implied volatility of 96.90% for this period. Based on an analysis of the options available for GSX expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $23.47-$34.78 at expiration. In this scenario, the average linear return for the trade would be 56.27%.

Big 7.09% Change: After closing the last trading session at $21.86, GSX TECHEDU INC opened today at $22.70 and has reached a high of $23.73.

Trade approach: A movement as big as 7.09% is a significantly bullish indicator, so this trade is designed to be profitable if GSX maintains its current direction and does not revert back to pricing on the bearish side of $23.41 on 21-Feb-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 GSX TECHEDU INC closes at or above $22.20 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 55.61% 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.