Quantchabot has detected a promising Bull Call Spread trade opportunity for MIRATI THERAPEUTICS INC. COMM (MRTX) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MRTX was recently trading at $78.05 and has an implied volatility of 116.84% for this period. Based on an analysis of the options available for MRTX expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $78.60-$128.04 at expiration. In this scenario, the average linear return for the trade would be 11.70%.
Big 7.70% Change: After closing the last trading session at $72.47, MIRATI THERAPEUTICS INC. COMM opened today at $73.58 and has reached a high of $78.05.
Trade approach: A movement as big as 7.70% is a significantly bullish indicator, so this trade is designed to be profitable if MRTX maintains its current direction and does not revert back to pricing on the bearish side of $78.05 on 20-Jan-2023. 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 MIRATI THERAPEUTICS INC. COMM closes at or above $64.50 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 65.75% 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.