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Quantchabot has detected a promising Bull Call Spread trade opportunity for TWILIO INC (TWLO) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TWLO was recently trading at $300.62 and has an implied volatility of 52.82% for this period. Based on an analysis of the options available for TWLO expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $300.69-$370.68 at expiration. In this scenario, the average linear return for the trade would be 86.84%.
Big 7.77% Change: After closing the last trading session at $278.93, TWILIO INC opened today at $284.50 and has reached a high of $301.56.
Trade approach: A movement as big as 7.77% is a significantly bullish indicator, so this trade is designed to be profitable if TWLO maintains its current direction and does not revert back to pricing on the bearish side of $300.62 on 15-Jan-2021. 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 TWILIO INC closes at or above $300.25 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.28% 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.