Big Gainer Alert: Trading today’s 10.8% move in CINEMARK HOLDINGS $CNK

Quantchabot has detected a promising Bull Call Spread trade opportunity for CINEMARK HOLDINGS (CNK) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CNK was recently trading at $13.59 and has an implied volatility of 60.49% for this period. Based on an analysis of the options available for CNK expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $13.68-$17.43 at expiration. In this scenario, the average linear return for the trade would be 20.53%.

Big 10.77% Change: After closing the last trading session at $12.27, CINEMARK HOLDINGS opened today at $12.30 and has reached a high of $13.61.

Trade approach: A movement as big as 10.77% is a significantly bullish indicator, so this trade is designed to be profitable if CNK maintains its current direction and does not revert back to pricing on the bearish side of $13.59 on 20-Jan-2023. 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 CINEMARK HOLDINGS closes at or above $13.05 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 57.71% 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.