Big Gainer Alert: Trading today’s 7.8% move in TWILIO INC $TWLO

Quantcha now offering unlimited commission-free options trading.

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.