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Quantchabot has detected a promising Bull Call Spread trade opportunity for PELOTON INTERACTIVE INC. CLASS A COMMON STOCK (PTON) for the 4-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PTON was recently trading at $36.87 and has an implied volatility of 94.91% for this period. Based on an analysis of the options available for PTON expiring on 4-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $36.87-$47.09 at expiration. In this scenario, the average linear return for the trade would be 68.46%.
Big 7.27% Change: After closing the last trading session at $34.37, PELOTON INTERACTIVE INC. CLASS A COMMON STOCK opened today at $34.27 and has reached a high of $37.68.
Trade approach: A movement as big as 7.27% is a significantly bullish indicator, so this trade is designed to be profitable if PTON maintains its current direction and does not revert back to pricing on the bearish side of $36.87 on 4-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 PELOTON INTERACTIVE INC. CLASS A COMMON STOCK closes at or above $36.79 on 4-Feb-2022. Based on our risk-neutral analysis, there is a 50.36% 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.