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Quantchabot has detected a promising Bull Call Spread trade opportunity for SMILEDIRECTCLUB INC. (SDC) for the 13-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SDC was recently trading at $12.10 and has an implied volatility of 85.76% for this period. Based on an analysis of the options available for SDC expiring on 13-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.10-$14.96 at expiration. In this scenario, the average linear return for the trade would be 22.86%.

Big 7.70% Change: After closing the last trading session at $11.23, SMILEDIRECTCLUB INC. opened today at $12.57 and has reached a high of $13.36.

Trade approach: A movement as big as 7.70% is a significantly bullish indicator, so this trade is designed to be profitable if SDC maintains its current direction and does not revert back to pricing on the bearish side of $12.10 on 13-Nov-2020. 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 SMILEDIRECTCLUB INC. closes at or above $11.91 on 13-Nov-2020. Based on our risk-neutral analysis, there is a 52.91% 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.