Big Gainer Alert: Trading today’s 7.5% move in TUSIMPLE HOLDINGS INC. CLASS A COMMON STOCK $TSP

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for TUSIMPLE HOLDINGS INC. CLASS A COMMON STOCK (TSP) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TSP was recently trading at $43.18 and has an implied volatility of 100.20% for this period. Based on an analysis of the options available for TSP expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $43.18-$58.19 at expiration. In this scenario, the average linear return for the trade would be 84.19%.

Big 7.47% Change: After closing the last trading session at $40.18, TUSIMPLE HOLDINGS INC. CLASS A COMMON STOCK opened today at $40.61 and has reached a high of $43.34.

Trade approach: A movement as big as 7.47% is a significantly bullish indicator, so this trade is designed to be profitable if TSP maintains its current direction and does not revert back to pricing on the bearish side of $43.18 on 15-Oct-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 TUSIMPLE HOLDINGS INC. CLASS A COMMON STOCK closes at or above $41.90 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 54.03% 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.