Big Gainer Alert: Trading today’s 7.2% move in KANZHUN LIMITED AMERICAN DEPOSITORY SHAR $BZ

Quantchabot has detected a promising Bull Call Spread trade opportunity for KANZHUN LIMITED AMERICAN DEPOSITORY SHAR (BZ) for the 19-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BZ was recently trading at $25.70 and has an implied volatility of 92.83% for this period. Based on an analysis of the options available for BZ expiring on 19-Aug-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $25.74-$37.23 at expiration. In this scenario, the average linear return for the trade would be 10.29%.

Big 7.17% Change: After closing the last trading session at $23.98, KANZHUN LIMITED AMERICAN DEPOSITORY SHAR opened today at $24.58 and has reached a high of $25.85.

Trade approach: A movement as big as 7.17% is a significantly bullish indicator, so this trade is designed to be profitable if BZ maintains its current direction and does not revert back to pricing on the bearish side of $25.70 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 KANZHUN LIMITED AMERICAN DEPOSITORY SHAR closes at or above $19.30 on 19-Aug-2022. Based on our risk-neutral analysis, there is a 78.26% 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.