Big Gainer Alert: Trading today’s 7.1% move in LIGHTSPEED COMMERCE INC $LSPD

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for LIGHTSPEED COMMERCE INC (LSPD) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

LSPD was recently trading at $57.09 and has an implied volatility of 68.61% for this period. Based on an analysis of the options available for LSPD expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $57.10-$75.11 at expiration. In this scenario, the average linear return for the trade would be 74.44%.

Big 7.09% Change: After closing the last trading session at $53.31, LIGHTSPEED COMMERCE INC opened today at $51.87 and has reached a high of $57.22.

Trade approach: A movement as big as 7.09% is a significantly bullish indicator, so this trade is designed to be profitable if LSPD maintains its current direction and does not revert back to pricing on the bearish side of $57.09 on 21-Jan-2022. 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 LIGHTSPEED COMMERCE INC closes at or above $55.75 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 53.47% 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.