Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for DIGITAL TURBINE INC (APPS) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APPS was recently trading at $59.19 and has an implied volatility of 82.84% for this period. Based on an analysis of the options available for APPS expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $59.19-$63.17 at expiration. In this scenario, the average linear return for the trade would be 48.36%.
Big 7.91% Change: After closing the last trading session at $54.85, DIGITAL TURBINE INC opened today at $55.64 and has reached a high of $59.48.
Trade approach: A movement as big as 7.91% is a significantly bullish indicator, so this trade is designed to be profitable if APPS maintains its current direction and does not revert back to pricing on the bearish side of $59.19 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 DIGITAL TURBINE INC closes at or above $58.30 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 59.17% 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.