Quantchabot has detected a promising Bull Call Spread trade opportunity for NOVAVAX (NVAX) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NVAX was recently trading at $45.62 and has an implied volatility of 114.95% for this period. Based on an analysis of the options available for NVAX expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $45.67-$66.07 at expiration. In this scenario, the average linear return for the trade would be 10.83%.
Big 10.27% Change: After closing the last trading session at $41.37, NOVAVAX opened today at $39.73 and has reached a high of $46.32.
Trade approach: A movement as big as 10.27% is a significantly bullish indicator, so this trade is designed to be profitable if NVAX maintains its current direction and does not revert back to pricing on the bearish side of $45.62 on 29-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 NOVAVAX closes at or above $37.85 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 69.49% 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.