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Quantchabot has detected a promising Bull Call Spread trade opportunity for JUMIA TECHNOLOGIES AG (JMIA) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JMIA was recently trading at $14.50 and has an implied volatility of 102.97% for this period. Based on an analysis of the options available for JMIA expiring on 16-Oct-2020, there is a 34.20% likelihood that the underlying will close within the analyzed range of $14.50-$14.98 at expiration. In this scenario, the average linear return for the trade would be 58.83%.
Big 12.32% Change: After closing the last trading session at $12.91, JUMIA TECHNOLOGIES AG opened today at $13.57 and has reached a high of $14.77.
Trade approach: A movement as big as 12.32% is a significantly bullish indicator, so this trade is designed to be profitable if JMIA maintains its current direction and does not revert back to pricing on the bearish side of $14.50 on 16-Oct-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 JUMIA TECHNOLOGIES AG closes at or above $14.45 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 54.25% 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.