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Quantchabot has detected a promising Bull Call Spread trade opportunity for EXACT SCIENCES (EXAS) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EXAS was recently trading at $151.20 and has an implied volatility of 58.50% for this period. Based on an analysis of the options available for EXAS expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $151.22-$183.25 at expiration. In this scenario, the average linear return for the trade would be 48.13%.
Big 15.33% Change: After closing the last trading session at $131.10, EXACT SCIENCES opened today at $132.93 and has reached a high of $152.48.
Trade approach: A movement as big as 15.33% is a significantly bullish indicator, so this trade is designed to be profitable if EXAS maintains its current direction and does not revert back to pricing on the bearish side of $151.20 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 EXACT SCIENCES closes at or above $150.85 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 50.51% 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.