Quantchabot has detected a new Bull Call Spread trade opportunity for KE HOLDINGS INC (BEKE) for the 7-Mar-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BEKE was recently trading at $17.67 and has an implied volatility of 64.16% for this period. Based on an analysis of the options available for BEKE expiring on 7-Mar-2025, there is a 34.21% likelihood that the underlying will close within the analyzed range of $17.74-$21.43 at expiration. In this scenario, the average linear return for the trade would be 12.16%.
Big 7.09% Change: After closing the last trading session at $16.50, KE HOLDINGS INC opened today at $16.98 and has reached a high of $17.79.
Trade approach: A movement as big as 7.09% is a significantly bullish indicator, so this trade is designed to be profitable if BEKE maintains its current direction and does not revert back to pricing on the bearish side of $17.67 on 7-Mar-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 KE HOLDINGS INC closes at or above $16.85 on 7-Mar-2025. Based on our risk-neutral analysis, there is a 60.74% 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.
Leave a Reply
You must be logged in to post a comment.