Quantchabot has detected a promising Bull Call Spread trade opportunity for BIOMARIN PHARMACEUTICAL (BMRN) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BMRN was recently trading at $94.85 and has an implied volatility of 36.19% for this period. Based on an analysis of the options available for BMRN expiring on 21-Oct-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $95.30-$112.60 at expiration. In this scenario, the average linear return for the trade would be 12.96%.
52 week high: BIOMARIN PHARMACEUTICAL recently reached a new 52-week high at $94.97. BMRN had traded in the range $70.73-$94.20 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 BMRN maintains its current direction and does not revert back to pricing on the bearish side of $94.85 on 21-Oct-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 BIOMARIN PHARMACEUTICAL closes at or above $92.40 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 57.34% 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.