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Quantchabot has detected a promising Bull Call Spread trade opportunity for CHEMOCENTRYX (CCXI) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CCXI was recently trading at $35.44 and has an implied volatility of 78.89% for this period. Based on an analysis of the options available for CCXI expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $35.44-$45.45 at expiration. In this scenario, the average linear return for the trade would be 70.29%.
Big 9.54% Change: After closing the last trading session at $32.35, CHEMOCENTRYX opened today at $32.95 and has reached a high of $36.29.
Trade approach: A movement as big as 9.54% is a significantly bullish indicator, so this trade is designed to be profitable if CCXI maintains its current direction and does not revert back to pricing on the bearish side of $35.44 on 18-Feb-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 CHEMOCENTRYX closes at or above $35.10 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 51.53% 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.