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Quantchabot has detected a promising Bull Call Spread trade opportunity for FIVERR INTERNATIONAL LTD (FVRR) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FVRR was recently trading at $253.00 and has an implied volatility of 75.16% for this period. Based on an analysis of the options available for FVRR expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $253.00-$271.61 at expiration. In this scenario, the average linear return for the trade would be 58.64%.
Big 8.96% Change: After closing the last trading session at $232.19, FIVERR INTERNATIONAL LTD opened today at $238.94 and has reached a high of $259.78.
Trade approach: A movement as big as 8.96% is a significantly bullish indicator, so this trade is designed to be profitable if FVRR maintains its current direction and does not revert back to pricing on the bearish side of $253.00 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 FIVERR INTERNATIONAL LTD closes at or above $251.60 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 53.12% 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.