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Quantchabot has detected a promising Bull Call Spread trade opportunity for GALAPAGOS NV AMERICAN DEPOSITARY SHARES (GLPG) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GLPG was recently trading at $54.23 and has an implied volatility of 61.36% for this period. Based on an analysis of the options available for GLPG expiring on 15-Oct-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $54.23-$56.98 at expiration. In this scenario, the average linear return for the trade would be 20.20%.
Big 8.27% Change: After closing the last trading session at $50.09, GALAPAGOS NV AMERICAN DEPOSITARY SHARES opened today at $52.38 and has reached a high of $54.31.
Trade approach: A movement as big as 8.27% is a significantly bullish indicator, so this trade is designed to be profitable if GLPG maintains its current direction and does not revert back to pricing on the bearish side of $54.23 on 15-Oct-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 GALAPAGOS NV AMERICAN DEPOSITARY SHARES closes at or above $54.05 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 52.69% 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.