Big Gainer Alert: Trading today’s 7.3% move in LENDINGCLUB CORP $LC

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Quantchabot has detected a promising Bull Call Spread trade opportunity for LENDINGCLUB CORP (LC) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LC was recently trading at $6.84 and has an implied volatility of 64.69% for this period. Based on an analysis of the options available for LC expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.84-$8.81 at expiration. In this scenario, the average linear return for the trade would be 52.32%.

Big 7.31% Change: After closing the last trading session at $6.37, LENDINGCLUB CORP opened today at $6.25 and has reached a high of $6.84.

Trade approach: A movement as big as 7.31% is a significantly bullish indicator, so this trade is designed to be profitable if LC maintains its current direction and does not revert back to pricing on the bearish side of $6.84 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 LENDINGCLUB CORP closes at or above $6.65 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 54.35% 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.