Big Gainer Alert: Trading today’s 13.3% move in AMBARELLA INC $AMBA

Quantchabot has detected a promising Bull Call Spread trade opportunity for AMBARELLA INC (AMBA) for the 25-Nov-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AMBA was recently trading at $75.72 and has an implied volatility of 55.63% for this period. Based on an analysis of the options available for AMBA expiring on 25-Nov-2022, there is a 34.46% likelihood that the underlying will close within the analyzed range of $75.78-$82.18 at expiration. In this scenario, the average linear return for the trade would be 10.38%.

Big 13.29% Change: After closing the last trading session at $66.84, AMBARELLA INC opened today at $70.24 and has reached a high of $76.23.

Trade approach: A movement as big as 13.29% is a significantly bullish indicator, so this trade is designed to be profitable if AMBA maintains its current direction and does not revert back to pricing on the bearish side of $75.72 on 25-Nov-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 AMBARELLA INC closes at or above $75.50 on 25-Nov-2022. Based on our risk-neutral analysis, there is a 51.87% 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.