52-Week High Alert: Trading today’s movement in FRANCO-NEVADA $FNV

Quantchabot has detected a promising Bull Call Spread trade opportunity for FRANCO-NEVADA (FNV) for the 21-Jul-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FNV was recently trading at $159.01 and has an implied volatility of 28.92% for this period. Based on an analysis of the options available for FNV expiring on 21-Jul-2023, there is a 34.16% likelihood that the underlying will close within the analyzed range of $160.33-$183.37 at expiration. In this scenario, the average linear return for the trade would be 12.07%.

52 week high: FRANCO-NEVADA recently reached a new 52-week high at $160.21. FNV had traded in the range $109.70-$159.28 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 FNV maintains its current direction and does not revert back to pricing on the bearish side of $159.01 on 21-Jul-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 FRANCO-NEVADA closes at or above $153.70 on 21-Jul-2023. Based on our risk-neutral analysis, there is a 62.35% 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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