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Quantchabot has detected a promising Bull Call Spread trade opportunity for RLX TECHNOLOGY INC (RLX) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RLX was recently trading at $5.31 and has an implied volatility of 103.60% for this period. Based on an analysis of the options available for RLX expiring on 19-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $5.31-$7.40 at expiration. In this scenario, the average linear return for the trade would be 37.14%.
Big 14.44% Change: After closing the last trading session at $4.64, RLX TECHNOLOGY INC opened today at $5.08 and has reached a high of $5.40.
Trade approach: A movement as big as 14.44% is a significantly bullish indicator, so this trade is designed to be profitable if RLX maintains its current direction and does not revert back to pricing on the bearish side of $5.31 on 19-Nov-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 RLX TECHNOLOGY INC closes at or above $5.20 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 52.53% 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.