Quantchabot has detected a new Bull Call Spread trade opportunity for PINDUODUO INC. ADS (PDD) for the 23-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PDD was recently trading at $117.73 and has an implied volatility of 52.09% for this period. Based on an analysis of the options available for PDD expiring on 23-May-2025, there is a 34.31% likelihood that the underlying will close within the analyzed range of $117.90-$129.44 at expiration. In this scenario, the average linear return for the trade would be 10.65%.
Big 7.37% Change: After closing the last trading session at $109.65, PINDUODUO INC. ADS opened today at $117.46 and has reached a high of $120.09.
Trade approach: A movement as big as 7.37% is a significantly bullish indicator, so this trade is designed to be profitable if PDD maintains its current direction and does not revert back to pricing on the bearish side of $117.73 on 23-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 PINDUODUO INC. ADS closes at or above $117.40 on 23-May-2025. Based on our risk-neutral analysis, there is a 51.82% 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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