Big Gainer Alert: Trading today’s 7.6% move in TRUPANION INC $TRUP

Quantchabot has detected a promising Bull Call Spread trade opportunity for TRUPANION INC (TRUP) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TRUP was recently trading at $68.31 and has an implied volatility of 68.44% for this period. Based on an analysis of the options available for TRUP expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $68.46-$83.50 at expiration. In this scenario, the average linear return for the trade would be 13.28%.

Big 7.58% Change: After closing the last trading session at $63.50, TRUPANION INC opened today at $64.55 and has reached a high of $68.65.

Trade approach: A movement as big as 7.58% is a significantly bullish indicator, so this trade is designed to be profitable if TRUP maintains its current direction and does not revert back to pricing on the bearish side of $68.31 on 21-Oct-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 TRUPANION INC closes at or above $65.80 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 57.95% 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.