Quantchabot has detected a promising Bull Call Spread trade opportunity for SNOWFLAKE INC (SNOW) for the 19-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SNOW was recently trading at $137.37 and has an implied volatility of 74.92% for this period. Based on an analysis of the options available for SNOW expiring on 19-Aug-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $137.58-$185.34 at expiration. In this scenario, the average linear return for the trade would be 13.64%.
Big 7.86% Change: After closing the last trading session at $127.36, SNOWFLAKE INC opened today at $136.28 and has reached a high of $137.52.
Trade approach: A movement as big as 7.86% is a significantly bullish indicator, so this trade is designed to be profitable if SNOW maintains its current direction and does not revert back to pricing on the bearish side of $137.37 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 SNOWFLAKE INC closes at or above $112.80 on 19-Aug-2022. Based on our risk-neutral analysis, there is a 74.78% 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.