Big Gainer Alert: Trading today’s 7.8% move in MICROSTRATEGY $MSTR

Quantchabot has detected a promising Bull Call Spread trade opportunity for MICROSTRATEGY (MSTR) for the 28-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MSTR was recently trading at $259.79 and has an implied volatility of 89.86% for this period. Based on an analysis of the options available for MSTR expiring on 28-Apr-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $261.10-$355.09 at expiration. In this scenario, the average linear return for the trade would be 10.62%.

Big 7.76% Change: After closing the last trading session at $241.08, MICROSTRATEGY opened today at $255.53 and has reached a high of $260.80.

Trade approach: A movement as big as 7.76% is a significantly bullish indicator, so this trade is designed to be profitable if MSTR maintains its current direction and does not revert back to pricing on the bearish side of $259.79 on 28-Apr-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 MICROSTRATEGY closes at or above $236.00 on 28-Apr-2023. Based on our risk-neutral analysis, there is a 62.91% 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.






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