Big Gainer Alert: Trading today’s 7.1% move in MONGODB INC. CLASS A COMMON STOCK $MDB

Quantchabot has detected a promising Bull Call Spread trade opportunity for MONGODB INC. CLASS A COMMON STOCK (MDB) for the 19-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MDB was recently trading at $286.10 and has an implied volatility of 76.41% for this period. Based on an analysis of the options available for MDB expiring on 19-Aug-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $286.54-$388.22 at expiration. In this scenario, the average linear return for the trade would be 10.24%.

Big 7.06% Change: After closing the last trading session at $267.23, MONGODB INC. CLASS A COMMON STOCK opened today at $271.42 and has reached a high of $289.52.

Trade approach: A movement as big as 7.06% is a significantly bullish indicator, so this trade is designed to be profitable if MDB maintains its current direction and does not revert back to pricing on the bearish side of $286.10 on 19-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 MONGODB INC. CLASS A COMMON STOCK closes at or above $237.00 on 19-Aug-2022. Based on our risk-neutral analysis, there is a 73.43% 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.

Leave a Reply