Quantchabot has detected a promising Bull Call Spread trade opportunity for BILIBILI INC. ADS (BILI) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BILI was recently trading at $16.05 and has an implied volatility of 56.52% for this period. Based on an analysis of the options available for BILI expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $16.18-$20.06 at expiration. In this scenario, the average linear return for the trade would be 11.40%.
Big 8.59% Change: After closing the last trading session at $14.78, BILIBILI INC. ADS opened today at $15.41 and has reached a high of $16.06.
Trade approach: A movement as big as 8.59% is a significantly bullish indicator, so this trade is designed to be profitable if BILI maintains its current direction and does not revert back to pricing on the bearish side of $16.05 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 BILIBILI INC. ADS closes at or above $14.67 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 67.64% 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.