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Quantchabot has detected a promising Bull Call Spread trade opportunity for SUMO LOGIC INC. COMMON STOCK (SUMO) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SUMO was recently trading at $11.75 and has an implied volatility of 63.67% for this period. Based on an analysis of the options available for SUMO expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $11.75-$14.34 at expiration. In this scenario, the average linear return for the trade would be 57.33%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, SUMO LOGIC INC. COMMON STOCK was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.
Trade approach: The recent sentiment change in SUMO on StockTwits appears to be moderately positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bullish strategy, the trade would be profitable if SUMO LOGIC INC. COMMON STOCK closed at or above $11.50 on 18-Feb-2022. Based on our analysis, there is a 54.32% 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.