Big Gainer Alert: Trading today’s 7.2% move in TENCENT MUSIC ENTERTAINMENT GROUP $TME

Quantchabot has detected a promising Bull Call Spread trade opportunity for TENCENT MUSIC ENTERTAINMENT GROUP (TME) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TME was recently trading at $6.95 and has an implied volatility of 48.41% for this period. Based on an analysis of the options available for TME expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $7.00-$8.43 at expiration. In this scenario, the average linear return for the trade would be 12.70%.

Big 7.18% Change: After closing the last trading session at $6.48, TENCENT MUSIC ENTERTAINMENT GROUP opened today at $6.57 and has reached a high of $6.97.

Trade approach: A movement as big as 7.18% is a significantly bullish indicator, so this trade is designed to be profitable if TME maintains its current direction and does not revert back to pricing on the bearish side of $6.95 on 20-Oct-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 TENCENT MUSIC ENTERTAINMENT GROUP closes at or above $6.85 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 54.76% 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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