Quantchabot has detected a new Bear Call Spread trade opportunity for FUTU HOLDINGS LTD ADS (FUTU) for the 9-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FUTU was recently trading at $87.31 and has an implied volatility of 59.16% for this period. Based on an analysis of the options available for FUTU expiring on 9-May-2025, there is a 34.28% likelihood that the underlying will close within the analyzed range of $77.69-$87.47 at expiration. In this scenario, the average linear return for the trade would be 32.15%.
Big -7.01% Change: After closing the last trading session at $93.89, FUTU HOLDINGS LTD ADS opened today at $87.82 and has reached a low of $86.32.
Trade approach: A movement as big as -7.01% is a significantly bearish indicator, so this trade is designed to be profitable if FUTU maintains its current direction and does not revert back to pricing on the bullish side of $87.31 on 9-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 bearish strategy, the trade would be profitable if FUTU HOLDINGS LTD ADS closes at or below $87.49 on 9-May-2025. Based on our risk-neutral analysis, there is a 50.10% 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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