Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for NUANCE COMMUNICATIONS (NUAN) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NUAN was recently trading at $21.58 and has an implied volatility of 23.05% for this period. Based on an analysis of the options available for NUAN expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $21.65-$24.02 at expiration. In this scenario, the average linear return for the trade would be 48.79%.
Big 9.99% Change: After closing the last trading session at $19.62, NUANCE COMMUNICATIONS opened today at $20.54 and has reached a high of $22.31.
Trade approach: A movement as big as 9.99% is a significantly bullish indicator, so this trade is designed to be profitable if NUAN maintains its current direction and does not revert back to pricing on the bearish side of $21.58 on 17-Apr-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 NUANCE COMMUNICATIONS closes at or above $21.65 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 50.02% 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.