Quantchabot has detected a new Bull Call Spread trade opportunity for DAVE INC. CLASS A COMMON STOCK (DAVE) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DAVE was recently trading at $97.87 and has an implied volatility of 77.20% for this period. Based on an analysis of the options available for DAVE expiring on 21-Feb-2025, there is a 34.28% likelihood that the underlying will close within the analyzed range of $98.08-$116.22 at expiration. In this scenario, the average linear return for the trade would be 11.74%.
Big 7.45% Change: After closing the last trading session at $91.08, DAVE INC. CLASS A COMMON STOCK opened today at $94.90 and has reached a high of $101.83.
Trade approach: A movement as big as 7.45% is a significantly bullish indicator, so this trade is designed to be profitable if DAVE maintains its current direction and does not revert back to pricing on the bearish side of $97.87 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 DAVE INC. CLASS A COMMON STOCK closes at or above $96.70 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 53.34% 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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