Quantchabot has detected a new Bull Call Spread trade opportunity for SOUNDHOUND AI INC CLASS A COMMON STOCK (SOUN) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SOUN was recently trading at $20.18 and has an implied volatility of 155.74% for this period. Based on an analysis of the options available for SOUN expiring on 21-Feb-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $20.34-$38.99 at expiration. In this scenario, the average linear return for the trade would be 12.28%.
Big 7.05% Change: After closing the last trading session at $18.86, SOUNDHOUND AI INC CLASS A COMMON STOCK opened today at $18.20 and has reached a high of $20.61.
Trade approach: A movement as big as 7.05% is a significantly bullish indicator, so this trade is designed to be profitable if SOUN maintains its current direction and does not revert back to pricing on the bearish side of $20.18 on 21-Feb-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 SOUNDHOUND AI INC CLASS A COMMON STOCK closes at or above $15.25 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 67.14% 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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