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Quantchabot has detected a promising Bull Put Spread trade opportunity for UPSTART HOLDINGS INC. COMMON STOCK (UPST) for the 19-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UPST was recently trading at $369.23 and has an implied volatility of 80.97% for this period. Based on an analysis of the options available for UPST expiring on 19-Nov-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $369.26-$476.63 at expiration. In this scenario, the average linear return for the trade would be 95.18%.
Big 7.06% Change: After closing the last trading session at $344.89, UPSTART HOLDINGS INC. COMMON STOCK opened today at $351.91 and has reached a high of $371.60.
Trade approach: A movement as big as 7.06% is a significantly bullish indicator, so this trade is designed to be profitable if UPST maintains its current direction and does not revert back to pricing on the bearish side of $369.23 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 UPSTART HOLDINGS INC. COMMON STOCK closes at or above $369.10 on 19-Nov-2021. Based on our risk-neutral analysis, there is a 50.07% 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.