Quantchabot has detected a promising Bull Call Spread trade opportunity for ILLUMINA (ILMN) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ILMN was recently trading at $222.27 and has an implied volatility of 46.82% for this period. Based on an analysis of the options available for ILMN expiring on 21-Apr-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $223.46-$260.79 at expiration. In this scenario, the average linear return for the trade would be 12.84%.
Big 14.57% Change: After closing the last trading session at $194.01, ILLUMINA opened today at $213.07 and has reached a high of $229.30.
Trade approach: A movement as big as 14.57% is a significantly bullish indicator, so this trade is designed to be profitable if ILMN maintains its current direction and does not revert back to pricing on the bearish side of $222.27 on 21-Apr-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 ILLUMINA closes at or above $220.10 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 53.91% 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.
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