Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Put Spread trade opportunity for AFFIRM HOLDINGS INC. CLASS A COMMON STOCK (AFRM) for the 4-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AFRM was recently trading at $68.82 and has an implied volatility of 92.57% for this period. Based on an analysis of the options available for AFRM expiring on 4-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $68.82-$83.21 at expiration. In this scenario, the average linear return for the trade would be 67.57%.

Big 7.03% Change: After closing the last trading session at $64.30, AFFIRM HOLDINGS INC. CLASS A COMMON STOCK opened today at $65.27 and has reached a high of $69.19.

Trade approach: A movement as big as 7.03% is a significantly bullish indicator, so this trade is designed to be profitable if AFRM maintains its current direction and does not revert back to pricing on the bearish side of $68.82 on 4-Feb-2022. 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 AFFIRM HOLDINGS INC. CLASS A COMMON STOCK closes at or above $68.50 on 4-Feb-2022. Based on our risk-neutral analysis, there is a 50.98% 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.