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Quantchabot has detected a promising Bull Call Spread trade opportunity for VAXART INC (VXRT) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VXRT was recently trading at $6.42 and has an implied volatility of 117.62% for this period. Based on an analysis of the options available for VXRT expiring on 20-Nov-2020, there is a 34.25% likelihood that the underlying will close within the analyzed range of $6.42-$6.65 at expiration. In this scenario, the average linear return for the trade would be 20.09%.
Big 8.54% Change: After closing the last trading session at $5.91, VAXART INC opened today at $5.90 and has reached a high of $6.49.
Trade approach: A movement as big as 8.54% is a significantly bullish indicator, so this trade is designed to be profitable if VXRT maintains its current direction and does not revert back to pricing on the bearish side of $6.42 on 20-Nov-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 VAXART INC closes at or above $6.40 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 52.56% 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.