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Quantchabot has detected a promising Bull Put Spread 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 $38.36 and has an implied volatility of 115.55% for this period. Based on an analysis of the options available for TSP expiring on 15-Oct-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $38.36-$42.88 at expiration. In this scenario, the average linear return for the trade would be 59.75%.
Big 8.58% Change: After closing the last trading session at $35.33, TUSIMPLE HOLDINGS INC. CLASS A COMMON STOCK opened today at $35.38 and has reached a high of $38.36.
Trade approach: A movement as big as 8.58% 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 $38.36 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 $37.90 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 54.32% 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.