Quantchabot has detected a new Bull Call Spread trade opportunity for UNITY SOFTWARE INC (U) for the 24-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
U was recently trading at $25.91 and has an implied volatility of 106.69% for this period. Based on an analysis of the options available for U expiring on 24-Jan-2025, there is a 34.25% likelihood that the underlying will close within the analyzed range of $25.98-$33.92 at expiration. In this scenario, the average linear return for the trade would be 10.29%.
Big 15.31% Change: After closing the last trading session at $22.47, UNITY SOFTWARE INC opened today at $25.18 and has reached a high of $26.08.
Trade approach: A movement as big as 15.31% is a significantly bullish indicator, so this trade is designed to be profitable if U maintains its current direction and does not revert back to pricing on the bearish side of $25.91 on 24-Jan-2025. 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 UNITY SOFTWARE INC closes at or above $21.80 on 24-Jan-2025. Based on our risk-neutral analysis, there is a 74.59% 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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