Quantchabot has detected a promising Bull Call Spread trade opportunity for COINBASE GLOBAL INC. CLASS A (COIN) for the 5-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
COIN was recently trading at $77.81 and has an implied volatility of 115.23% for this period. Based on an analysis of the options available for COIN expiring on 5-Aug-2022, there is a 34.92% likelihood that the underlying will close within the analyzed range of $77.82-$85.87 at expiration. In this scenario, the average linear return for the trade would be 10.34%.
Big 15.74% Change: After closing the last trading session at $67.23, COINBASE GLOBAL INC. CLASS A opened today at $69.05 and has reached a high of $77.90.
Trade approach: A movement as big as 15.74% is a significantly bullish indicator, so this trade is designed to be profitable if COIN maintains its current direction and does not revert back to pricing on the bearish side of $77.81 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 COINBASE GLOBAL INC. CLASS A closes at or above $76.51 on 5-Aug-2022. Based on our risk-neutral analysis, there is a 57.08% 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.