Quantchabot has detected a new Bull Call Spread trade opportunity for XPENG INC (XPEV) for the 14-Mar-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
XPEV was recently trading at $26.15 and has an implied volatility of 115.37% for this period. Based on an analysis of the options available for XPEV expiring on 14-Mar-2025, there is a 34.69% likelihood that the underlying will close within the analyzed range of $26.16-$29.40 at expiration. In this scenario, the average linear return for the trade would be 11.53%.
Big 13.94% Change: After closing the last trading session at $22.95, XPENG INC opened today at $25.25 and has reached a high of $27.16.
Trade approach: A movement as big as 13.94% is a significantly bullish indicator, so this trade is designed to be profitable if XPEV maintains its current direction and does not revert back to pricing on the bearish side of $26.15 on 14-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 XPENG INC closes at or above $26.05 on 14-Mar-2025. Based on our risk-neutral analysis, there is a 51.50% 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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