Quantchabot has detected a promising Bull Call Spread trade opportunity for UNITY SOFTWARE INC (U) for the 5-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
U was recently trading at $48.58 and has an implied volatility of 50.88% for this period. Based on an analysis of the options available for U expiring on 5-Aug-2022, there is a 38.15% likelihood that the underlying will close within the analyzed range of $48.58-$49.59 at expiration. In this scenario, the average linear return for the trade would be 10.64%.
Big 7.15% Change: After closing the last trading session at $45.34, UNITY SOFTWARE INC opened today at $43.50 and has reached a high of $50.05.
Trade approach: A movement as big as 7.15% is a significantly bullish indicator, so this trade is designed to be profitable if U maintains its current direction and does not revert back to pricing on the bearish side of $48.58 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 UNITY SOFTWARE INC closes at or above $47.85 on 5-Aug-2022. Based on our risk-neutral analysis, there is a 80.99% 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.