Quantchabot has detected a promising Bull Call Spread trade opportunity for SEATTLE GENETICS (SGEN) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SGEN was recently trading at $169.88 and has an implied volatility of 73.94% for this period. Based on an analysis of the options available for SGEN expiring on 15-Jul-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $170.04-$209.19 at expiration. In this scenario, the average linear return for the trade would be 10.86%.
Big 15.74% Change: After closing the last trading session at $146.78, SEATTLE GENETICS opened today at $148.06 and has reached a high of $175.48.
Trade approach: A movement as big as 15.74% is a significantly bullish indicator, so this trade is designed to be profitable if SGEN maintains its current direction and does not revert back to pricing on the bearish side of $169.88 on 15-Jul-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 SEATTLE GENETICS closes at or above $160.20 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 61.35% 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.