Big Gainer Alert: Trading today’s 9.8% move in BANDWIDTH INC. CLASS A COMMON STOCK $BAND

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Quantchabot has detected a promising Bull Put Spread trade opportunity for BANDWIDTH INC. CLASS A COMMON STOCK (BAND) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BAND was recently trading at $72.28 and has an implied volatility of 63.70% for this period. Based on an analysis of the options available for BAND expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $72.29-$88.38 at expiration. In this scenario, the average linear return for the trade would be 46.85%.

Big 9.81% Change: After closing the last trading session at $65.83, BANDWIDTH INC. CLASS A COMMON STOCK opened today at $69.94 and has reached a high of $73.47.

Trade approach: A movement as big as 9.81% is a significantly bullish indicator, so this trade is designed to be profitable if BAND maintains its current direction and does not revert back to pricing on the bearish side of $72.28 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 BANDWIDTH INC. CLASS A COMMON STOCK closes at or above $71.60 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 51.90% 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.