Quantchabot has detected a promising Bull Call Spread trade opportunity for SEA LTD ADS (SE) for the 12-May-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SE was recently trading at $84.15 and has an implied volatility of 44.44% for this period. Based on an analysis of the options available for SE expiring on 12-May-2023, there is a 34.57% likelihood that the underlying will close within the analyzed range of $84.21-$88.57 at expiration. In this scenario, the average linear return for the trade would be 10.15%.
Big 7.32% Change: After closing the last trading session at $78.41, SEA LTD ADS opened today at $85.00 and has reached a high of $85.96.
Trade approach: A movement as big as 7.32% is a significantly bullish indicator, so this trade is designed to be profitable if SE maintains its current direction and does not revert back to pricing on the bearish side of $84.15 on 12-May-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 SEA LTD ADS closes at or above $83.39 on 12-May-2023. Based on our risk-neutral analysis, there is a 57.84% 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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