Quantchabot has detected a new Bull Call Spread trade opportunity for NIO INC (NIO) for the 30-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NIO was recently trading at $4.21 and has an implied volatility of 66.53% for this period. Based on an analysis of the options available for NIO expiring on 30-May-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $4.23-$5.23 at expiration. In this scenario, the average linear return for the trade would be 14.36%.
Big 7.25% Change: After closing the last trading session at $3.93, NIO INC opened today at $3.94 and has reached a high of $4.23.
Trade approach: A movement as big as 7.25% is a significantly bullish indicator, so this trade is designed to be profitable if NIO maintains its current direction and does not revert back to pricing on the bearish side of $4.21 on 30-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 NIO INC closes at or above $4.02 on 30-May-2025. Based on our risk-neutral analysis, there is a 59.73% 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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