Big Gainer Alert: Trading today’s 12.4% move in DOUYU INTERNATIONAL HOLDINGS ADR $DOYU

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Quantchabot has detected a promising Bull Call Spread trade opportunity for DOUYU INTERNATIONAL HOLDINGS ADR (DOYU) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DOYU was recently trading at $15.74 and has an implied volatility of 65.89% for this period. Based on an analysis of the options available for DOYU expiring on 20-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $15.75-$19.55 at expiration. In this scenario, the average linear return for the trade would be 54.85%.

Big 12.45% Change: After closing the last trading session at $14.00, DOUYU INTERNATIONAL HOLDINGS ADR opened today at $16.09 and has reached a high of $16.37.

Trade approach: A movement as big as 12.45% is a significantly bullish indicator, so this trade is designed to be profitable if DOYU maintains its current direction and does not revert back to pricing on the bearish side of $15.74 on 20-Nov-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 DOUYU INTERNATIONAL HOLDINGS ADR closes at or above $15.40 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 54.08% 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.