Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for LI AUTO INC (LI) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LI was recently trading at $29.73 and has an implied volatility of 62.23% for this period. Based on an analysis of the options available for LI expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $29.73-$36.36 at expiration. In this scenario, the average linear return for the trade would be 66.87%.
Big 7.93% Change: After closing the last trading session at $27.54, LI AUTO INC opened today at $27.75 and has reached a high of $29.81.
Trade approach: A movement as big as 7.93% is a significantly bullish indicator, so this trade is designed to be profitable if LI maintains its current direction and does not revert back to pricing on the bearish side of $29.73 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 LI AUTO INC closes at or above $29.70 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.18% 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.