Quantchabot has detected a promising Bull Call Spread trade opportunity for SHOPIFY INC (SHOP) for the 10-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SHOP was recently trading at $46.24 and has an implied volatility of 61.57% for this period. Based on an analysis of the options available for SHOP expiring on 10-Feb-2023, there is a 34.28% likelihood that the underlying will close within the analyzed range of $46.34-$52.87 at expiration. In this scenario, the average linear return for the trade would be 10.16%.
Big 8.32% Change: After closing the last trading session at $42.69, SHOPIFY INC opened today at $44.96 and has reached a high of $46.41.
Trade approach: A movement as big as 8.32% is a significantly bullish indicator, so this trade is designed to be profitable if SHOP maintains its current direction and does not revert back to pricing on the bearish side of $46.24 on 10-Feb-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 SHOPIFY INC closes at or above $44.47 on 10-Feb-2023. Based on our risk-neutral analysis, there is a 62.35% 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.