Big Gainer Alert: Trading today’s 7.4% move in STITCH FIX INC. CLASS A COMMON STOCK $SFIX

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Quantchabot has detected a promising Bull Call Spread trade opportunity for STITCH FIX INC. CLASS A COMMON STOCK (SFIX) for the 29-May-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SFIX was recently trading at $23.77 and has an implied volatility of 85.83% for this period. Based on an analysis of the options available for SFIX expiring on 29-May-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $23.77-$26.82 at expiration. In this scenario, the average linear return for the trade would be 91.04%.

Big 7.41% Change: After closing the last trading session at $22.13, STITCH FIX INC. CLASS A COMMON STOCK opened today at $22.18 and has reached a high of $23.94.

Trade approach: A movement as big as 7.41% is a significantly bullish indicator, so this trade is designed to be profitable if SFIX maintains its current direction and does not revert back to pricing on the bearish side of $23.77 on 29-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 STITCH FIX INC. CLASS A COMMON STOCK closes at or above $23.65 on 29-May-2020. Based on our risk-neutral analysis, there is a 51.68% 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.