Big Gainer Alert: Trading today’s 8.6% move in UNITY SOFTWARE INC $U

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

U was recently trading at $36.22 and has an implied volatility of 79.29% for this period. Based on an analysis of the options available for U expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $36.46-$50.10 at expiration. In this scenario, the average linear return for the trade would be 11.11%.

Big 8.61% Change: After closing the last trading session at $33.35, UNITY SOFTWARE INC opened today at $33.65 and has reached a high of $36.45.

Trade approach: A movement as big as 8.61% is a significantly bullish indicator, so this trade is designed to be profitable if U maintains its current direction and does not revert back to pricing on the bearish side of $36.22 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 UNITY SOFTWARE INC closes at or above $28.25 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 78.91% 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.