Quantchabot has detected a new Secured Put trade opportunity for YOUDAO INC (DAO) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DAO was recently trading at $8.51 and has an implied volatility of 90.29% for this period. Based on an analysis of the options available for DAO expiring on 21-Feb-2025, there is a 34.28% likelihood that the underlying will close within the analyzed range of $8.53-$10.40 at expiration. In this scenario, the average linear return for the trade would be 10.38%.
52 week high: YOUDAO INC recently reached a new 52-week high at $8.79. DAO had traded in the range $2.86-$8.30 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if DAO maintains its current direction and does not revert back to pricing on the bearish side of $8.51 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 YOUDAO INC closes at or above $8.45 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 51.86% 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.
Leave a Reply
You must be logged in to post a comment.