Quantchabot has detected a promising Bull Call Spread trade opportunity for ROBLOX CORP (RBLX) for the 5-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RBLX was recently trading at $33.59 and has an implied volatility of 95.14% for this period. Based on an analysis of the options available for RBLX expiring on 5-Aug-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $33.63-$46.73 at expiration. In this scenario, the average linear return for the trade would be 30.43%.
Big 7.94% Change: After closing the last trading session at $31.12, ROBLOX CORP opened today at $31.38 and has reached a high of $33.93.
Trade approach: A movement as big as 7.94% is a significantly bullish indicator, so this trade is designed to be profitable if RBLX maintains its current direction and does not revert back to pricing on the bearish side of $33.59 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 ROBLOX CORP closes at or above $29.30 on 5-Aug-2022. Based on our risk-neutral analysis, there is a 66.26% 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.