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Quantchabot has detected a promising Bull Put Spread trade opportunity for CARDLYTICS INC. COMMON STOCK (CDLX) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CDLX was recently trading at $69.48 and has an implied volatility of 64.77% for this period. Based on an analysis of the options available for CDLX expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $69.48-$85.46 at expiration. In this scenario, the average linear return for the trade would be 66.19%.
Big 8.19% Change: After closing the last trading session at $64.22, CARDLYTICS INC. COMMON STOCK opened today at $64.80 and has reached a high of $69.59.
Trade approach: A movement as big as 8.19% is a significantly bullish indicator, so this trade is designed to be profitable if CDLX maintains its current direction and does not revert back to pricing on the bearish side of $69.48 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 CARDLYTICS INC. COMMON STOCK closes at or above $68.00 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 54.15% 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.