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Quantchabot has detected a promising Bull Call Spread trade opportunity for ALNYLAM PHARMACEUTICALS (ALNY) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ALNY was recently trading at $194.39 and has an implied volatility of 50.57% for this period. Based on an analysis of the options available for ALNY expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $194.42-$238.79 at expiration. In this scenario, the average linear return for the trade would be 53.33%.
Big 7.40% Change: After closing the last trading session at $181.00, ALNYLAM PHARMACEUTICALS opened today at $188.99 and has reached a high of $195.00.
Trade approach: A movement as big as 7.40% is a significantly bullish indicator, so this trade is designed to be profitable if ALNY maintains its current direction and does not revert back to pricing on the bearish side of $194.39 on 21-Jan-2022. 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 ALNYLAM PHARMACEUTICALS closes at or above $193.80 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.62% 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.