Quantchabot has detected a new Bull Call Spread trade opportunity for BILIBILI INC. ADS (BILI) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BILI was recently trading at $17.93 and has an implied volatility of 66.49% for this period. Based on an analysis of the options available for BILI expiring on 21-Feb-2025, there is a 34.28% likelihood that the underlying will close within the analyzed range of $17.97-$20.81 at expiration. In this scenario, the average linear return for the trade would be 11.35%.
Big 7.24% Change: After closing the last trading session at $16.72, BILIBILI INC. ADS opened today at $17.71 and has reached a high of $18.12.
Trade approach: A movement as big as 7.24% is a significantly bullish indicator, so this trade is designed to be profitable if BILI maintains its current direction and does not revert back to pricing on the bearish side of $17.93 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 BILIBILI INC. ADS closes at or above $16.98 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 65.11% 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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