Big Gainer Alert: Trading today’s 9.3% move in KE HOLDINGS INC $BEKE

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

BEKE was recently trading at $17.35 and has an implied volatility of 92.94% for this period. Based on an analysis of the options available for BEKE expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $17.36-$22.11 at expiration. In this scenario, the average linear return for the trade would be 11.33%.

Big 9.26% Change: After closing the last trading session at $15.88, KE HOLDINGS INC opened today at $17.22 and has reached a high of $17.99.

Trade approach: A movement as big as 9.26% is a significantly bullish indicator, so this trade is designed to be profitable if BEKE maintains its current direction and does not revert back to pricing on the bearish side of $17.35 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 KE HOLDINGS INC closes at or above $15.97 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 63.59% 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.