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Quantchabot has detected a promising Bull Call Spread trade opportunity for OPENDOOR TECHNOLOGIES INC (OPEN) for the 25-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
OPEN was recently trading at $12.85 and has an implied volatility of 85.50% for this period. Based on an analysis of the options available for OPEN expiring on 25-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.85-$17.31 at expiration. In this scenario, the average linear return for the trade would be 44.29%.
Big 8.07% Change: After closing the last trading session at $11.89, OPENDOOR TECHNOLOGIES INC opened today at $12.25 and has reached a high of $13.32.
Trade approach: A movement as big as 8.07% is a significantly bullish indicator, so this trade is designed to be profitable if OPEN maintains its current direction and does not revert back to pricing on the bearish side of $12.85 on 25-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 OPENDOOR TECHNOLOGIES INC closes at or above $12.69 on 25-Feb-2022. Based on our risk-neutral analysis, there is a 51.68% 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.