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Quantchabot has detected a promising Synthetic Long Stock trade opportunity for QUDIAN INC (QD) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
QD was recently trading at $2.06 and has an implied volatility of 94.43% for this period. Based on an analysis of the options available for QD expiring on 21-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $2.06-$2.64 at expiration. In this scenario, the average linear return for the trade would be 51.52%.
Big 7.85% Change: After closing the last trading session at $1.91, QUDIAN INC opened today at $1.94 and has reached a high of $2.06.
Trade approach: A movement as big as 7.85% is a significantly bullish indicator, so this trade is designed to be profitable if QD maintains its current direction and does not revert back to pricing on the bearish side of $2.06 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 QUDIAN INC closes at or above $2.05 on 21-May-2021. Based on our risk-neutral analysis, there is a 50.79% 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.