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Quantchabot has detected a promising Bull Call Spread trade opportunity for BOOKING HOLDINGS INC. COMMON STOCK (BKNG) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BKNG was recently trading at $2,266.55 and has an implied volatility of 40.68% for this period. Based on an analysis of the options available for BKNG expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $2,268.74-$2,717.13 at expiration. In this scenario, the average linear return for the trade would be 10.47%.
Big 7.76% Change: After closing the last trading session at $2,103.33, BOOKING HOLDINGS INC. COMMON STOCK opened today at $2,300.00 and has reached a high of $2,308.00.
Trade approach: A movement as big as 7.76% is a significantly bullish indicator, so this trade is designed to be profitable if BKNG maintains its current direction and does not revert back to pricing on the bearish side of $2,266.55 on 15-Jul-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 BOOKING HOLDINGS INC. COMMON STOCK closes at or above $2,098.68 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 66.73% 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.