Big Gainer Alert: Trading today’s 8.2% move in COINBASE GLOBAL INC. CLASS A $COIN

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 $96.18 and has an implied volatility of 152.31% for this period. Based on an analysis of the options available for COIN expiring on 5-Aug-2022, there is a 37.37% likelihood that the underlying will close within the analyzed range of $96.19-$102.90 at expiration. In this scenario, the average linear return for the trade would be 10.19%.

Big 8.19% Change: After closing the last trading session at $88.90, COINBASE GLOBAL INC. CLASS A opened today at $86.58 and has reached a high of $96.20.

Trade approach: A movement as big as 8.19% 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 $96.18 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 $95.05 on 5-Aug-2022. Based on our risk-neutral analysis, there is a 58.00% 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.