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 $17.03 and has an implied volatility of 111.68% for this period. Based on an analysis of the options available for KC expiring on 21-Feb-2025, there is a 34.29% likelihood that the underlying will close within the analyzed range of $17.06-$21.67 at expiration. In this scenario, the average linear return for the trade would be 13.41%.
Big 12.08% Change: After closing the last trading session at $15.19, KINGSOFT CLOUD HOLDINGS LIMITED ADS opened today at $15.35 and has reached a high of $17.34.
Trade approach: A movement as big as 12.08% 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 $17.03 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 $15.70 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 63.65% 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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