Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bull Call Spread trade opportunity for MERCADOLIBRE (MELI) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. MELI was recently trading at $1,312.72 and has an implied volatility of 43.28% for this period. Based on an analysis of the options available for MELI expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $1,313.03-$1,576.77 at expiration. In this scenario, the average linear return for the trade would be 69.17%. Big 7.07% Change: After closing the last trading session at $1,226.03, MERCADOLIBRE opened today at $1,274.39 and has reached a high of $1,314.84. Trade approach: A movement as big as 7.07% is a significantly bullish indicator, so this trade is designed to be profitable if MELI maintains its current direction and does not revert back to pricing on the bearish side of $1,312.72 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 MERCADOLIBRE closes at or above $1,307.40 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.94% 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.