Big Gainer Alert: Trading today’s 7.6% move in XPENG INC $XPEV

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

XPEV was recently trading at $32.91 and has an implied volatility of 79.35% for this period. Based on an analysis of the options available for XPEV expiring on 19-Aug-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $32.96-$45.19 at expiration. In this scenario, the average linear return for the trade would be 15.89%.

Big 7.62% Change: After closing the last trading session at $30.58, XPENG INC opened today at $32.64 and has reached a high of $33.06.

Trade approach: A movement as big as 7.62% is a significantly bullish indicator, so this trade is designed to be profitable if XPEV maintains its current direction and does not revert back to pricing on the bearish side of $32.91 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 XPENG INC closes at or above $27.60 on 19-Aug-2022. Based on our risk-neutral analysis, there is a 71.34% 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.