Quantchabot has detected a promising Bull Call Spread trade opportunity for UPSTART HOLDINGS INC. COMMON STOCK (UPST) for the 28-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
UPST was recently trading at $24.84 and has an implied volatility of 110.36% for this period. Based on an analysis of the options available for UPST expiring on 28-Oct-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $24.91-$35.51 at expiration. In this scenario, the average linear return for the trade would be 10.34%.
Big 7.88% Change: After closing the last trading session at $23.03, UPSTART HOLDINGS INC. COMMON STOCK opened today at $22.90 and has reached a high of $24.92.
Trade approach: A movement as big as 7.88% is a significantly bullish indicator, so this trade is designed to be profitable if UPST maintains its current direction and does not revert back to pricing on the bearish side of $24.84 on 28-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 UPSTART HOLDINGS INC. COMMON STOCK closes at or above $19.25 on 28-Oct-2022. Based on our risk-neutral analysis, there is a 76.69% 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.