Quantchabot has detected a promising Bull Call Spread trade opportunity for ALAMOS GOLD INC (AGI) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AGI was recently trading at $9.38 and has an implied volatility of 47.33% for this period. Based on an analysis of the options available for AGI expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $9.41-$11.40 at expiration. In this scenario, the average linear return for the trade would be 11.95%.
52 week high: ALAMOS GOLD INC recently reached a new 52-week high at $9.41. AGI had traded in the range $6.35-$9.22 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 AGI maintains its current direction and does not revert back to pricing on the bearish side of $9.38 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 ALAMOS GOLD INC closes at or above $9.10 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 57.01% 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.