Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Call Spread trade opportunity for SNAP INC (SNAP) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SNAP was recently trading at $44.97 and has an implied volatility of 53.38% for this period. Based on an analysis of the options available for SNAP expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $44.98-$56.85 at expiration. In this scenario, the average linear return for the trade would be 82.15%.

Big 8.23% Change: After closing the last trading session at $41.55, SNAP INC opened today at $41.68 and has reached a high of $45.41.

Trade approach: A movement as big as 8.23% is a significantly bullish indicator, so this trade is designed to be profitable if SNAP maintains its current direction and does not revert back to pricing on the bearish side of $44.97 on 15-Jan-2021. 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 SNAP INC closes at or above $44.91 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.27% 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.