Big Gainer Alert: Trading today’s 8.8% move in BILIBILI INC. AMERICAN DEPOSITARY SHARES $BILI

Quantchabot has detected a promising Bull Call Spread trade opportunity for BILIBILI INC. AMERICAN DEPOSITARY SHARES (BILI) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BILI was recently trading at $25.56 and has an implied volatility of 94.90% for this period. Based on an analysis of the options available for BILI expiring on 29-Jul-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $25.60-$35.81 at expiration. In this scenario, the average linear return for the trade would be 13.21%.

Big 8.81% Change: After closing the last trading session at $23.49, BILIBILI INC. AMERICAN DEPOSITARY SHARES opened today at $24.76 and has reached a high of $25.82.

Trade approach: A movement as big as 8.81% is a significantly bullish indicator, so this trade is designed to be profitable if BILI maintains its current direction and does not revert back to pricing on the bearish side of $25.56 on 29-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 BILIBILI INC. AMERICAN DEPOSITARY SHARES closes at or above $20.30 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 75.54% 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.