Quantchabot has detected a promising Bull Call Spread trade opportunity for GUARDANT HEALTH INC (GH) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GH was recently trading at $28.68 and has an implied volatility of 74.51% for this period. Based on an analysis of the options available for GH expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $28.80-$36.47 at expiration. In this scenario, the average linear return for the trade would be 22.40%.
Big 7.08% Change: After closing the last trading session at $26.78, GUARDANT HEALTH INC opened today at $27.64 and has reached a high of $28.75.
Trade approach: A movement as big as 7.08% is a significantly bullish indicator, so this trade is designed to be profitable if GH maintains its current direction and does not revert back to pricing on the bearish side of $28.68 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 GUARDANT HEALTH INC closes at or above $27.15 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 59.88% 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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