Quantchabot has detected a promising Bull Call Spread trade opportunity for DATADOG INC. (DDOG) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DDOG was recently trading at $99.88 and has an implied volatility of 79.43% for this period. Based on an analysis of the options available for DDOG expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $99.98-$128.61 at expiration. In this scenario, the average linear return for the trade would be 12.36%.
Big 9.65% Change: After closing the last trading session at $91.09, DATADOG INC. opened today at $92.54 and has reached a high of $99.95.
Trade approach: A movement as big as 9.65% is a significantly bullish indicator, so this trade is designed to be profitable if DDOG maintains its current direction and does not revert back to pricing on the bearish side of $99.88 on 29-Jul-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 DATADOG INC. closes at or above $86.15 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 72.32% 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.