Big Gainer Alert: Trading today’s 9.8% move in BEIGENE LTD. AMERICAN DEPOSITARY SHARES $BGNE

Quantchabot has detected a promising Bull Call Spread trade opportunity for BEIGENE LTD. AMERICAN DEPOSITARY SHARES (BGNE) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BGNE was recently trading at $145.16 and has an implied volatility of 95.83% for this period. Based on an analysis of the options available for BGNE expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $145.27-$186.33 at expiration. In this scenario, the average linear return for the trade would be 12.00%.

Big 9.85% Change: After closing the last trading session at $132.14, BEIGENE LTD. AMERICAN DEPOSITARY SHARES opened today at $149.26 and has reached a high of $150.69.

Trade approach: A movement as big as 9.85% is a significantly bullish indicator, so this trade is designed to be profitable if BGNE maintains its current direction and does not revert back to pricing on the bearish side of $145.16 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 BEIGENE LTD. AMERICAN DEPOSITARY SHARES closes at or above $132.50 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 64.46% 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.