Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Call Spread trade opportunity for YOUDAO INC (DAO) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. DAO was recently trading at $31.18 and has an implied volatility of 88.21% for this period. Based on an analysis of the options available for DAO expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $31.19-$40.03 at expiration. In this scenario, the average linear return for the trade would be 62.69%. Big 10.07% Change: After closing the last trading session at $28.33, YOUDAO INC opened today at $28.66 and has reached a high of $31.50. Trade approach: A movement as big as 10.07% is a significantly bullish indicator, so this trade is designed to be profitable if DAO maintains its current direction and does not revert back to pricing on the bearish side of $31.18 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 YOUDAO INC closes at or above $30.50 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 53.55% 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.