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Quantchabot has detected a promising Bull Call Spread trade opportunity for PALANTIR TECHNOLOGIES INC (PLTR) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PLTR was recently trading at $27.93 and has an implied volatility of 115.10% for this period. Based on an analysis of the options available for PLTR expiring on 16-Apr-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $27.93-$43.91 at expiration. In this scenario, the average linear return for the trade would be 147.18%.
Big 10.97% Change: After closing the last trading session at $25.17, PALANTIR TECHNOLOGIES INC opened today at $27.02 and has reached a high of $28.10.
Trade approach: A movement as big as 10.97% is a significantly bullish indicator, so this trade is designed to be profitable if PLTR maintains its current direction and does not revert back to pricing on the bearish side of $27.93 on 16-Apr-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 PALANTIR TECHNOLOGIES INC closes at or above $27.25 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 52.19% 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.