Big Gainer Alert: Trading today’s 7.2% move in NOVAVAX $NVAX

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Quantchabot has detected a promising Bull Call Spread trade opportunity for NOVAVAX (NVAX) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NVAX was recently trading at $222.49 and has an implied volatility of 108.04% for this period. Based on an analysis of the options available for NVAX expiring on 7-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $222.49-$269.07 at expiration. In this scenario, the average linear return for the trade would be 70.75%.

Big 7.16% Change: After closing the last trading session at $207.61, NOVAVAX opened today at $209.90 and has reached a high of $225.68.

Trade approach: A movement as big as 7.16% is a significantly bullish indicator, so this trade is designed to be profitable if NVAX maintains its current direction and does not revert back to pricing on the bearish side of $222.49 on 7-May-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 NOVAVAX closes at or above $221.30 on 7-May-2021. Based on our risk-neutral analysis, there is a 51.13% 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.