Big Gainer Alert: Trading today’s 7.5% move in PALANTIR TECHNOLOGIES INC $PLTR

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

PLTR was recently trading at $8.86 and has an implied volatility of 68.91% for this period. Based on an analysis of the options available for PLTR expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $8.87-$11.10 at expiration. In this scenario, the average linear return for the trade would be 13.31%.

Big 7.52% Change: After closing the last trading session at $8.24, PALANTIR TECHNOLOGIES INC opened today at $8.59 and has reached a high of $9.05.

Trade approach: A movement as big as 7.52% is a significantly bullish indicator, so this trade is designed to be profitable if PLTR maintains its current direction and does not revert back to pricing on the bearish side of $8.86 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 PALANTIR TECHNOLOGIES INC closes at or above $8.29 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 61.89% 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.