Big Gainer Alert: Trading today’s 8.0% move in AMBARELLA INC $AMBA

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Quantchabot has detected a promising Bull Put Spread trade opportunity for AMBARELLA INC (AMBA) for the 26-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AMBA was recently trading at $164.79 and has an implied volatility of 54.84% for this period. Based on an analysis of the options available for AMBA expiring on 26-Nov-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $164.81-$199.11 at expiration. In this scenario, the average linear return for the trade would be 48.40%.

Big 7.97% Change: After closing the last trading session at $152.62, AMBARELLA INC opened today at $155.40 and has reached a high of $165.57.

Trade approach: A movement as big as 7.97% is a significantly bullish indicator, so this trade is designed to be profitable if AMBA maintains its current direction and does not revert back to pricing on the bearish side of $164.79 on 26-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 AMBARELLA INC closes at or above $163.90 on 26-Nov-2021. Based on our risk-neutral analysis, there is a 51.17% 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.