Big Gainer Alert: Trading today’s 9.6% move in DIDI GLOBAL INC $DIDI

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Quantchabot has detected a promising Covered Call trade opportunity for DIDI GLOBAL INC (DIDI) for the 11-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DIDI was recently trading at $4.92 and has an implied volatility of 119.45% for this period. Based on an analysis of the options available for DIDI expiring on 11-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $4.92-$6.98 at expiration. In this scenario, the average linear return for the trade would be 16.93%.

Big 9.58% Change: After closing the last trading session at $4.49, DIDI GLOBAL INC opened today at $4.50 and has reached a high of $4.94.

Trade approach: A movement as big as 9.58% is a significantly bullish indicator, so this trade is designed to be profitable if DIDI maintains its current direction and does not revert back to pricing on the bearish side of $4.92 on 11-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 DIDI GLOBAL INC closes at or above $4.82 on 11-Feb-2022. Based on our risk-neutral analysis, there is a 52.35% 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.