52-Week High Alert: Trading today’s movement in BIOMARIN PHARMACEUTICAL $BMRN

Quantchabot has detected a promising Bull Call Spread trade opportunity for BIOMARIN PHARMACEUTICAL (BMRN) for the 20-Jan-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BMRN was recently trading at $98.99 and has an implied volatility of 31.92% for this period. Based on an analysis of the options available for BMRN expiring on 20-Jan-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $99.64-$113.25 at expiration. In this scenario, the average linear return for the trade would be 15.69%.

52 week high: BIOMARIN PHARMACEUTICAL recently reached a new 52-week high at $99.74. BMRN had traded in the range $70.73-$97.76 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 $98.99 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 BIOMARIN PHARMACEUTICAL closes at or above $99.15 on 20-Jan-2023. Based on our risk-neutral analysis, there is a 51.52% 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.