Big Gainer Alert: Trading today’s 23.0% move in KINGSOFT CLOUD HOLDINGS LIMITED ADS $KC

Quantchabot has detected a new Bull Call Spread trade opportunity for KINGSOFT CLOUD HOLDINGS LIMITED ADS (KC) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KC was recently trading at $15.46 and has an implied volatility of 131.68% for this period. Based on an analysis of the options available for KC expiring on 21-Feb-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $15.50-$20.88 at expiration. In this scenario, the average linear return for the trade would be 12.61%.

Big 22.99% Change: After closing the last trading session at $12.57, KINGSOFT CLOUD HOLDINGS LIMITED ADS opened today at $14.92 and has reached a high of $16.34.

Trade approach: A movement as big as 22.99% is a significantly bullish indicator, so this trade is designed to be profitable if KC maintains its current direction and does not revert back to pricing on the bearish side of $15.46 on 21-Feb-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 KINGSOFT CLOUD HOLDINGS LIMITED ADS closes at or above $13.60 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 66.99% 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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