Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for GLU MOBILE (GLUU) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GLUU was recently trading at $9.71 and has an implied volatility of 52.00% for this period. Based on an analysis of the options available for GLUU expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $9.71-$11.91 at expiration. In this scenario, the average linear return for the trade would be 62.42%.
Big 7.19% Change: After closing the last trading session at $9.06, GLU MOBILE opened today at $9.02 and has reached a high of $9.78.
Trade approach: A movement as big as 7.19% is a significantly bullish indicator, so this trade is designed to be profitable if GLUU maintains its current direction and does not revert back to pricing on the bearish side of $9.71 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 GLU MOBILE closes at or above $9.60 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 52.30% 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.