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Quantchabot has detected a promising Bull Put Spread trade opportunity for UP FINTECH HOLDING LTD AMERICAN DEPOSITARY SHARE R (TIGR) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TIGR was recently trading at $18.54 and has an implied volatility of 125.95% for this period. Based on an analysis of the options available for TIGR expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.54-$28.90 at expiration. In this scenario, the average linear return for the trade would be 115.26%.
Big 9.06% Change: After closing the last trading session at $17.00, UP FINTECH HOLDING LTD AMERICAN DEPOSITARY SHARE R opened today at $16.65 and has reached a high of $18.62.
Trade approach: A movement as big as 9.06% is a significantly bullish indicator, so this trade is designed to be profitable if TIGR maintains its current direction and does not revert back to pricing on the bearish side of $18.54 on 21-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 UP FINTECH HOLDING LTD AMERICAN DEPOSITARY SHARE R closes at or above $18.00 on 21-May-2021. Based on our risk-neutral analysis, there is a 52.67% 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.