Quantchabot has detected a promising Bull Call Spread trade opportunity for HUYA INC (HUYA) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HUYA was recently trading at $2.66 and has an implied volatility of 74.79% for this period. Based on an analysis of the options available for HUYA expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $2.68-$3.57 at expiration. In this scenario, the average linear return for the trade would be 16.74%.
Big 8.13% Change: After closing the last trading session at $2.46, HUYA INC opened today at $2.54 and has reached a high of $2.70.
Trade approach: A movement as big as 8.13% is a significantly bullish indicator, so this trade is designed to be profitable if HUYA maintains its current direction and does not revert back to pricing on the bearish side of $2.66 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 HUYA INC closes at or above $2.65 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 51.69% 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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