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Quantchabot has detected a promising Bull Put Spread trade opportunity for ROBLOX CORP (RBLX) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RBLX was recently trading at $123.76 and has an implied volatility of 84.87% for this period. Based on an analysis of the options available for RBLX expiring on 18-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $123.79-$187.05 at expiration. In this scenario, the average linear return for the trade would be 120.64%.
Big 7.74% Change: After closing the last trading session at $114.87, ROBLOX CORP opened today at $116.68 and has reached a high of $124.29.
Trade approach: A movement as big as 7.74% is a significantly bullish indicator, so this trade is designed to be profitable if RBLX maintains its current direction and does not revert back to pricing on the bearish side of $123.76 on 18-Feb-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 ROBLOX CORP closes at or above $123.40 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.30% 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.