Quantchabot has detected a new Bull Call Spread trade opportunity for NU HOLDINGS LTD (NU) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NU was recently trading at $11.69 and has an implied volatility of 47.20% for this period. Based on an analysis of the options available for NU expiring on 2-May-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $11.76-$14.00 at expiration. In this scenario, the average linear return for the trade would be 15.71%.
Big 8.74% Change: After closing the last trading session at $10.75, NU HOLDINGS LTD opened today at $10.99 and has reached a high of $11.71.
Trade approach: A movement as big as 8.74% is a significantly bullish indicator, so this trade is designed to be profitable if NU maintains its current direction and does not revert back to pricing on the bearish side of $11.69 on 2-May-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 NU HOLDINGS LTD closes at or above $11.35 on 2-May-2025. Based on our risk-neutral analysis, there is a 58.11% 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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