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Quantchabot has detected a promising Bull Call Spread trade opportunity for FUTU HOLDINGS LTD ADS (FUTU) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FUTU was recently trading at $68.28 and has an implied volatility of 84.39% for this period. Based on an analysis of the options available for FUTU expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $68.29-$89.76 at expiration. In this scenario, the average linear return for the trade would be 102.62%.
Big 11.02% Change: After closing the last trading session at $61.50, FUTU HOLDINGS LTD ADS opened today at $65.67 and has reached a high of $69.00.
Trade approach: A movement as big as 11.02% is a significantly bullish indicator, so this trade is designed to be profitable if FUTU maintains its current direction and does not revert back to pricing on the bearish side of $68.28 on 19-Feb-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 FUTU HOLDINGS LTD ADS closes at or above $67.90 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 50.83% 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.