Big Gainer Alert: Trading today’s 8.4% move in NEXTDOOR HOLDINGS INC $KIND

Quantchabot has detected a new Secured Put trade opportunity for NEXTDOOR HOLDINGS INC (KIND) for the 19-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KIND was recently trading at $2.40 and has an implied volatility of 91.38% for this period. Based on an analysis of the options available for KIND expiring on 19-Jul-2024, there is a 34.18% likelihood that the underlying will close within the analyzed range of $2.41-$3.26 at expiration. In this scenario, the average linear return for the trade would be 14.54%.

Big 8.37% Change: After closing the last trading session at $2.21, NEXTDOOR HOLDINGS INC opened today at $2.20 and has reached a high of $2.40.

Trade approach: A movement as big as 8.37% is a significantly bullish indicator, so this trade is designed to be profitable if KIND maintains its current direction and does not revert back to pricing on the bearish side of $2.40 on 19-Jul-2024. 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 NEXTDOOR HOLDINGS INC closes at or above $2.40 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 50.53% 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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