Big Gainer Alert: Trading today’s 7.1% move in CLOUDFLARE INC $NET

Quantchabot has detected a promising Bull Call Spread trade opportunity for CLOUDFLARE INC (NET) for the 5-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NET was recently trading at $47.51 and has an implied volatility of 96.09% for this period. Based on an analysis of the options available for NET expiring on 5-Aug-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $47.57-$66.32 at expiration. In this scenario, the average linear return for the trade would be 23.46%.

Big 7.15% Change: After closing the last trading session at $44.34, CLOUDFLARE INC opened today at $45.22 and has reached a high of $48.21.

Trade approach: A movement as big as 7.15% is a significantly bullish indicator, so this trade is designed to be profitable if NET maintains its current direction and does not revert back to pricing on the bearish side of $47.51 on 5-Aug-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 CLOUDFLARE INC closes at or above $44.05 on 5-Aug-2022. Based on our risk-neutral analysis, there is a 59.15% 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.