Quantchabot has detected a promising Bull Call Spread trade opportunity for ARGENX SE AMERICAN DEPOSITARY SHARES (ARGX) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ARGX was recently trading at $357.03 and has an implied volatility of 45.34% for this period. Based on an analysis of the options available for ARGX expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $357.31-$402.07 at expiration. In this scenario, the average linear return for the trade would be 10.19%.
52 week high: ARGENX SE AMERICAN DEPOSITARY SHARES recently reached a new 52-week high at $359.50. ARGX had traded in the range $249.50-$356.78 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if ARGX maintains its current direction and does not revert back to pricing on the bearish side of $357.03 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 ARGENX SE AMERICAN DEPOSITARY SHARES closes at or above $353.41 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 53.72% 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.