Quantchabot has detected a new Bull Call Spread trade opportunity for GDS HOLDINGS LIMITED ADS (GDS) for the 16-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GDS was recently trading at $21.38 and has an implied volatility of 84.49% for this period. Based on an analysis of the options available for GDS expiring on 16-May-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $21.45-$27.30 at expiration. In this scenario, the average linear return for the trade would be 10.09%.
Big 7.85% Change: After closing the last trading session at $19.82, GDS HOLDINGS LIMITED ADS opened today at $20.51 and has reached a high of $21.45.
Trade approach: A movement as big as 7.85% is a significantly bullish indicator, so this trade is designed to be profitable if GDS maintains its current direction and does not revert back to pricing on the bearish side of $21.38 on 16-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 GDS HOLDINGS LIMITED ADS closes at or above $20.50 on 16-May-2025. Based on our risk-neutral analysis, there is a 57.49% 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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