Big Gainer Alert: Trading today’s 7.7% move in ROOT INC. CLASS A COMMON STOCK $ROOT

Quantchabot has detected a new Bull Call Spread trade opportunity for ROOT INC. CLASS A COMMON STOCK (ROOT) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ROOT was recently trading at $105.00 and has an implied volatility of 90.51% for this period. Based on an analysis of the options available for ROOT expiring on 21-Feb-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $105.24-$129.10 at expiration. In this scenario, the average linear return for the trade would be 10.73%.

Big 7.69% Change: After closing the last trading session at $97.50, ROOT INC. CLASS A COMMON STOCK opened today at $94.00 and has reached a high of $105.91.

Trade approach: A movement as big as 7.69% is a significantly bullish indicator, so this trade is designed to be profitable if ROOT maintains its current direction and does not revert back to pricing on the bearish side of $105.00 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 ROOT INC. CLASS A COMMON STOCK closes at or above $98.70 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 62.38% 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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