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Quantchabot has detected a promising Bull Call 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 $76.24 and has an implied volatility of 63.23% for this period. Based on an analysis of the options available for DOCN expiring on 15-Oct-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $76.25-$91.75 at expiration. In this scenario, the average linear return for the trade would be 65.10%.
52 week high: DIGITAL OCEAN HOLDINGS INC recently reached a new 52-week high at $77.62. DOCN had traded in the range $35.35-$74.36 over the past year.
Trade approach: Reaching a new 52-week high is a 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 $76.24 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 $75.70 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 51.55% 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.