Big Gainer Alert: Trading today’s 8.9% move in ILLUMINA $ILMN

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Quantchabot has detected a promising Bull Call Spread trade opportunity for ILLUMINA (ILMN) for the 23-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ILMN was recently trading at $418.81 and has an implied volatility of 37.08% for this period. Based on an analysis of the options available for ILMN expiring on 23-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $418.83-$454.15 at expiration. In this scenario, the average linear return for the trade would be 58.40%.

Big 8.91% Change: After closing the last trading session at $384.54, ILLUMINA opened today at $424.36 and has reached a high of $424.36.

Trade approach: A movement as big as 8.91% is a significantly bullish indicator, so this trade is designed to be profitable if ILMN maintains its current direction and does not revert back to pricing on the bearish side of $418.81 on 23-Apr-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 ILLUMINA closes at or above $418.50 on 23-Apr-2021. Based on our risk-neutral analysis, there is a 50.39% 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.