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Quantchabot has detected a promising Bull Put Spread trade opportunity for JUMIA TECHNOLOGIES AG (JMIA) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

JMIA was recently trading at $35.02 and has an implied volatility of 132.71% for this period. Based on an analysis of the options available for JMIA expiring on 19-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $35.03-$63.73 at expiration. In this scenario, the average linear return for the trade would be 153.95%.

Big 11.02% Change: After closing the last trading session at $31.54, JUMIA TECHNOLOGIES AG opened today at $32.06 and has reached a high of $35.79.

Trade approach: A movement as big as 11.02% is a significantly bullish indicator, so this trade is designed to be profitable if JMIA maintains its current direction and does not revert back to pricing on the bearish side of $35.02 on 19-Feb-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 JUMIA TECHNOLOGIES AG closes at or above $34.90 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 50.24% 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.