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Quantchabot has detected a promising Bull Put Spread trade opportunity for DOORDASH INC (DASH) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DASH was recently trading at $218.50 and has an implied volatility of 90.06% for this period. Based on an analysis of the options available for DASH expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $218.50-$238.20 at expiration. In this scenario, the average linear return for the trade would be 48.98%.
Big 7.65% Change: After closing the last trading session at $202.97, DOORDASH INC opened today at $205.60 and has reached a high of $220.42.
Trade approach: A movement as big as 7.65% is a significantly bullish indicator, so this trade is designed to be profitable if DASH maintains its current direction and does not revert back to pricing on the bearish side of $218.50 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 DOORDASH INC closes at or above $217.49 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 52.15% 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.