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Quantchabot has detected a promising Bull Call Spread trade opportunity for IMMUNOMEDICS (IMMU) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IMMU was recently trading at $22.03 and has an implied volatility of 59.59% for this period. Based on an analysis of the options available for IMMU expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $22.09-$28.26 at expiration. In this scenario, the average linear return for the trade would be 61.57%.
Big 7.46% Change: After closing the last trading session at $20.50, IMMUNOMEDICS opened today at $20.96 and has reached a high of $22.12.
Trade approach: A movement as big as 7.46% is a significantly bullish indicator, so this trade is designed to be profitable if IMMU maintains its current direction and does not revert back to pricing on the bearish side of $22.03 on 21-Feb-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 IMMUNOMEDICS closes at or above $21.80 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 52.16% 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.