Quantchabot has detected a promising Bull Call Spread trade opportunity for VERTEX (VRTX) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VRTX was recently trading at $317.30 and has an implied volatility of 28.75% for this period. Based on an analysis of the options available for VRTX expiring on 20-Jan-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $319.41-$358.79 at expiration. In this scenario, the average linear return for the trade would be 10.37%.
52 week high: VERTEX recently reached a new 52-week high at $319.01. VRTX had traded in the range $179.96-$318.38 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 VRTX maintains its current direction and does not revert back to pricing on the bearish side of $317.30 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 VERTEX closes at or above $317.30 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 52.26% 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.