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Quantchabot has detected a promising Bull Call Spread trade opportunity for APPIAN CORPORATION CLASS A COMMON STOCK (APPN) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APPN was recently trading at $159.96 and has an implied volatility of 80.60% for this period. Based on an analysis of the options available for APPN expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $159.98-$206.97 at expiration. In this scenario, the average linear return for the trade would be 81.15%.
Big 8.01% Change: After closing the last trading session at $148.10, APPIAN CORPORATION CLASS A COMMON STOCK opened today at $148.62 and has reached a high of $162.87.
Trade approach: A movement as big as 8.01% is a significantly bullish indicator, so this trade is designed to be profitable if APPN maintains its current direction and does not revert back to pricing on the bearish side of $159.96 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 APPIAN CORPORATION CLASS A COMMON STOCK closes at or above $158.00 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 51.93% 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.