Big Gainer Alert: Trading today’s 7.6% move in PAN AMERICAN SILVER $PAAS

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Quantchabot has detected a promising Bull Call Spread trade opportunity for PAN AMERICAN SILVER (PAAS) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PAAS was recently trading at $33.29 and has an implied volatility of 47.70% for this period. Based on an analysis of the options available for PAAS expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $33.23-$40.34 at expiration. In this scenario, the average linear return for the trade would be 88.35%.

Big 7.56% Change: After closing the last trading session at $30.95, PAN AMERICAN SILVER opened today at $31.31 and has reached a high of $33.29.

Trade approach: A movement as big as 7.56% is a significantly bullish indicator, so this trade is designed to be profitable if PAAS maintains its current direction and does not revert back to pricing on the bearish side of $33.29 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 PAN AMERICAN SILVER closes at or above $32.97 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 51.59% 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.