Big Gainer Alert: Trading today’s 9.2% move in DIGITAL OCEAN HOLDINGS INC $DOCN

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Quantchabot has detected a promising Bull Put Spread trade opportunity for DIGITAL OCEAN HOLDINGS INC (DOCN) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DOCN was recently trading at $76.47 and has an implied volatility of 62.63% for this period. Based on an analysis of the options available for DOCN expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $76.48-$92.15 at expiration. In this scenario, the average linear return for the trade would be 75.55%.

Big 9.20% Change: After closing the last trading session at $70.03, DIGITAL OCEAN HOLDINGS INC opened today at $71.93 and has reached a high of $76.82.

Trade approach: A movement as big as 9.20% is a significantly bullish indicator, so this trade is designed to be profitable if DOCN maintains its current direction and does not revert back to pricing on the bearish side of $76.47 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 DIGITAL OCEAN HOLDINGS INC closes at or above $75.40 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 53.03% 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.