Big Gainer Alert: Trading today’s 12.8% move in NU HOLDINGS LTD $NU

Quantchabot has detected a promising Bull Call Spread trade opportunity for NU HOLDINGS LTD (NU) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NU was recently trading at $3.92 and has an implied volatility of 91.70% for this period. Based on an analysis of the options available for NU expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $3.92-$4.97 at expiration. In this scenario, the average linear return for the trade would be 10.94%.

Big 12.82% Change: After closing the last trading session at $3.47, NU HOLDINGS LTD opened today at $3.59 and has reached a high of $3.99.

Trade approach: A movement as big as 12.82% is a significantly bullish indicator, so this trade is designed to be profitable if NU maintains its current direction and does not revert back to pricing on the bearish side of $3.92 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 NU HOLDINGS LTD closes at or above $3.70 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 59.52% 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.