Big Gainer Alert: Trading today’s 10.4% move in NIO INC $NIO

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 $22.93 and has an implied volatility of 78.96% 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 $22.99-$33.86 at expiration. In this scenario, the average linear return for the trade would be 12.54%.

Big 10.40% Change: After closing the last trading session at $20.77, NIO INC opened today at $21.84 and has reached a high of $22.95.

Trade approach: A movement as big as 10.40% 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 $22.93 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 $18.05 on 16-Sep-2022. Based on our risk-neutral analysis, there is a 73.44% 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.