Big Gainer Alert: Trading today’s 8.0% move in 2U INC. COMMON STOCK $TWOU

Quantchabot has detected a promising Bull Call Spread trade opportunity for 2U INC. COMMON STOCK (TWOU) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TWOU was recently trading at $7.17 and has an implied volatility of 80.05% for this period. Based on an analysis of the options available for TWOU expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $7.22-$9.95 at expiration. In this scenario, the average linear return for the trade would be 17.14%.

Big 7.98% Change: After closing the last trading session at $6.64, 2U INC. COMMON STOCK opened today at $6.65 and has reached a high of $7.23.

Trade approach: A movement as big as 7.98% is a significantly bullish indicator, so this trade is designed to be profitable if TWOU maintains its current direction and does not revert back to pricing on the bearish side of $7.17 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 2U INC. COMMON STOCK closes at or above $6.75 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 58.27% 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.