Quantchabot has detected a promising Bull Call Spread trade opportunity for DATADOG INC. (DDOG) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DDOG was recently trading at $91.67 and has an implied volatility of 78.16% for this period. Based on an analysis of the options available for DDOG expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $91.78-$118.36 at expiration. In this scenario, the average linear return for the trade would be 12.87%.
Big 7.05% Change: After closing the last trading session at $85.63, DATADOG INC. opened today at $88.00 and has reached a high of $93.14.
Trade approach: A movement as big as 7.05% is a significantly bullish indicator, so this trade is designed to be profitable if DDOG maintains its current direction and does not revert back to pricing on the bearish side of $91.67 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 DATADOG INC. closes at or above $77.15 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 75.32% 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.