Quantchabot has detected a promising Bull Put Spread trade opportunity for FULL TRUCK ALLIANCE CO LTD (YMM) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
YMM was recently trading at $7.92 and has an implied volatility of 128.91% for this period. Based on an analysis of the options available for YMM expiring on 15-Jul-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $7.93-$11.60 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
Big 12.41% Change: After closing the last trading session at $7.05, FULL TRUCK ALLIANCE CO LTD opened today at $7.27 and has reached a high of $7.98.
Trade approach: A movement as big as 12.41% is a significantly bullish indicator, so this trade is designed to be profitable if YMM maintains its current direction and does not revert back to pricing on the bearish side of $7.92 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 FULL TRUCK ALLIANCE CO LTD closes at or above $7.25 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 59.39% 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.