Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for ZYNGA (ZNGA) for the 1-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ZNGA was recently trading at $7.77 and has an implied volatility of 57.37% for this period. Based on an analysis of the options available for ZNGA expiring on 1-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $7.77-$8.27 at expiration. In this scenario, the average linear return for the trade would be 67.99%.
52 week high: ZYNGA recently reached a new 52-week high at $7.82. ZNGA had traded in the range $5.41-$7.80 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if ZNGA maintains its current direction and does not revert back to pricing on the bearish side of $7.77 on 1-May-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 ZYNGA closes at or above $7.76 on 1-May-2020. Based on our risk-neutral analysis, there is a 50.85% 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.