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Quantchabot has detected a promising Bull Call Spread trade opportunity for CORCEPT THERAPEUTICS (CORT) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CORT was recently trading at $22.76 and has an implied volatility of 64.25% for this period. Based on an analysis of the options available for CORT expiring on 19-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $22.77-$31.46 at expiration. In this scenario, the average linear return for the trade would be 49.59%.
Big 21.97% Change: After closing the last trading session at $18.66, CORCEPT THERAPEUTICS opened today at $22.45 and has reached a high of $23.50.
Trade approach: A movement as big as 21.97% is a significantly bullish indicator, so this trade is designed to be profitable if CORT maintains its current direction and does not revert back to pricing on the bearish side of $22.76 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 CORCEPT THERAPEUTICS closes at or above $22.75 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 50.13% 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.