Quantchabot has detected a promising Bull Call Spread trade opportunity for NIO INC (NIO) for the 16-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NIO was recently trading at $17.52 and has an implied volatility of 84.79% for this period. Based on an analysis of the options available for NIO expiring on 16-Sep-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $17.60-$27.11 at expiration. In this scenario, the average linear return for the trade would be 15.21%.
Big 9.57% Change: After closing the last trading session at $15.99, NIO INC opened today at $16.53 and has reached a high of $17.59.
Trade approach: A movement as big as 9.57% is a significantly bullish indicator, so this trade is designed to be profitable if NIO maintains its current direction and does not revert back to pricing on the bearish side of $17.52 on 16-Sep-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 NIO INC closes at or above $13.35 on 16-Sep-2022. Based on our risk-neutral analysis, there is a 73.90% 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.