Big Gainer Alert: Trading today’s 8.1% move in DLOCAL LIMITED CLASS A COMMON SHARES $DLO

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Quantchabot has detected a promising Bull Call Spread trade opportunity for DLOCAL LIMITED CLASS A COMMON SHARES (DLO) for the 17-Dec-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DLO was recently trading at $33.41 and has an implied volatility of 86.90% for this period. Based on an analysis of the options available for DLO expiring on 17-Dec-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $33.41-$41.61 at expiration. In this scenario, the average linear return for the trade would be 65.28%.

Big 8.05% Change: After closing the last trading session at $30.92, DLOCAL LIMITED CLASS A COMMON SHARES opened today at $30.21 and has reached a high of $33.46.

Trade approach: A movement as big as 8.05% is a significantly bullish indicator, so this trade is designed to be profitable if DLO maintains its current direction and does not revert back to pricing on the bearish side of $33.41 on 17-Dec-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 DLOCAL LIMITED CLASS A COMMON SHARES closes at or above $32.90 on 17-Dec-2021. Based on our risk-neutral analysis, there is a 52.80% 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.