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Quantchabot has detected a promising Bull Call Spread trade opportunity for BEAM THERAPEUTICS INC. (BEAM) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BEAM was recently trading at $75.22 and has an implied volatility of 92.30% for this period. Based on an analysis of the options available for BEAM expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $75.23-$98.60 at expiration. In this scenario, the average linear return for the trade would be 49.05%.
Big 8.78% Change: After closing the last trading session at $69.15, BEAM THERAPEUTICS INC. opened today at $69.63 and has reached a high of $75.97.
Trade approach: A movement as big as 8.78% is a significantly bullish indicator, so this trade is designed to be profitable if BEAM maintains its current direction and does not revert back to pricing on the bearish side of $75.22 on 18-Jun-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 BEAM THERAPEUTICS INC. closes at or above $75.00 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 50.44% 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.