Quantchabot has detected a promising Bull Call Spread trade opportunity for COINBASE GLOBAL INC. CLASS A (COIN) for the 21-Jul-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
COIN was recently trading at $55.60 and has an implied volatility of 92.54% for this period. Based on an analysis of the options available for COIN expiring on 21-Jul-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $56.31-$86.31 at expiration. In this scenario, the average linear return for the trade would be 10.10%.
Big 12.97% Change: After closing the last trading session at $49.22, COINBASE GLOBAL INC. CLASS A opened today at $54.05 and has reached a high of $56.39.
Trade approach: A movement as big as 12.97% is a significantly bullish indicator, so this trade is designed to be profitable if COIN maintains its current direction and does not revert back to pricing on the bearish side of $55.60 on 21-Jul-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 COINBASE GLOBAL INC. CLASS A closes at or above $41.10 on 21-Jul-2023. Based on our risk-neutral analysis, there is a 76.97% 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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