Big Gainer Alert: Trading today’s 7.2% move in DATADOG INC. $DDOG

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Quantchabot has detected a promising Bull Put Spread trade opportunity for DATADOG INC. (DDOG) for the 14-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DDOG was recently trading at $89.20 and has an implied volatility of 56.57% for this period. Based on an analysis of the options available for DDOG expiring on 14-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $89.21-$107.15 at expiration. In this scenario, the average linear return for the trade would be 81.28%.

Big 7.16% Change: After closing the last trading session at $83.24, DATADOG INC. opened today at $83.30 and has reached a high of $89.79.

Trade approach: A movement as big as 7.16% is a significantly bullish indicator, so this trade is designed to be profitable if DDOG maintains its current direction and does not revert back to pricing on the bearish side of $89.20 on 14-May-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 DATADOG INC. closes at or above $88.45 on 14-May-2021. Based on our risk-neutral analysis, there is a 51.86% 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.