Quantchabot has detected a promising Bull Call Spread trade opportunity for TRANSMEDICS GROUP INC. COMMON STOCK (TMDX) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TMDX was recently trading at $67.31 and has an implied volatility of 62.31% for this period. Based on an analysis of the options available for TMDX expiring on 17-Feb-2023, there is a 34.24% likelihood that the underlying will close within the analyzed range of $67.52-$79.14 at expiration. In this scenario, the average linear return for the trade would be 14.68%.

52 week high: TRANSMEDICS GROUP INC. COMMON STOCK recently reached a new 52-week high at $67.86. TMDX had traded in the range $10.00-$67.00 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 TMDX maintains its current direction and does not revert back to pricing on the bearish side of $67.31 on 17-Feb-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 TRANSMEDICS GROUP INC. COMMON STOCK closes at or above $66.50 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 53.81% 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.