Quantchabot has detected a new Bull Call Spread trade opportunity for SOUNDHOUND AI INC CLASS A COMMON STOCK (SOUN) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SOUN was recently trading at $9.21 and has an implied volatility of 110.15% for this period. Based on an analysis of the options available for SOUN expiring on 25-Apr-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $9.27-$13.62 at expiration. In this scenario, the average linear return for the trade would be 10.09%.
Big 7.90% Change: After closing the last trading session at $8.54, SOUNDHOUND AI INC CLASS A COMMON STOCK opened today at $9.03 and has reached a high of $9.44.
Trade approach: A movement as big as 7.90% 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 $9.21 on 25-Apr-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 $7.45 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 71.46% 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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