Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Call Spread trade opportunity for FIRST MAJESTIC SILVER (AG) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AG was recently trading at $17.14 and has an implied volatility of 61.85% for this period. Based on an analysis of the options available for AG expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $17.14-$22.04 at expiration. In this scenario, the average linear return for the trade would be 108.52%.
Big 7.13% Change: After closing the last trading session at $16.00, FIRST MAJESTIC SILVER opened today at $16.30 and has reached a high of $17.27.
Trade approach: A movement as big as 7.13% is a significantly bullish indicator, so this trade is designed to be profitable if AG maintains its current direction and does not revert back to pricing on the bearish side of $17.14 on 16-Jul-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 FIRST MAJESTIC SILVER closes at or above $16.91 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 52.17% 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.