Big Gainer Alert: Trading today’s 9.6% move in TRIP.COM GROUP LTD ADS $TCOM

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Quantchabot has detected a promising Bull Call Spread trade opportunity for TRIP.COM GROUP LTD ADS (TCOM) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TCOM was recently trading at $36.77 and has an implied volatility of 30.84% for this period. Based on an analysis of the options available for TCOM expiring on 21-Feb-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $36.86-$41.38 at expiration. In this scenario, the average linear return for the trade would be 61.20%.

Big 9.63% Change: After closing the last trading session at $33.54, TRIP.COM GROUP LTD ADS opened today at $34.94 and has reached a high of $36.80.

Trade approach: A movement as big as 9.63% is a significantly bullish indicator, so this trade is designed to be profitable if TCOM maintains its current direction and does not revert back to pricing on the bearish side of $36.77 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 TRIP.COM GROUP LTD ADS closes at or above $36.75 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 51.04% 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.