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Quantchabot has detected a promising Bull Put Spread trade opportunity for NOVOCURE LIMITED ORDINARY SHARES (NVCR) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NVCR was recently trading at $134.03 and has an implied volatility of 52.43% for this period. Based on an analysis of the options available for NVCR expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $134.06-$164.72 at expiration. In this scenario, the average linear return for the trade would be 71.76%.
Big 7.00% Change: After closing the last trading session at $125.26, NOVOCURE LIMITED ORDINARY SHARES opened today at $127.00 and has reached a high of $135.84.
Trade approach: A movement as big as 7.00% is a significantly bullish indicator, so this trade is designed to be profitable if NVCR maintains its current direction and does not revert back to pricing on the bearish side of $134.03 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 NOVOCURE LIMITED ORDINARY SHARES closes at or above $133.10 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 51.39% 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.