Quantchabot has detected a promising Bull Call Spread trade opportunity for BIOVENTUS INC. CLASS A COMMON STOCK (BVS) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BVS was recently trading at $3.87 and has an implied volatility of 111.68% for this period. Based on an analysis of the options available for BVS expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $3.90-$5.99 at expiration. In this scenario, the average linear return for the trade would be 51.43%.
Big 12.17% Change: After closing the last trading session at $3.45, BIOVENTUS INC. CLASS A COMMON STOCK opened today at $3.41 and has reached a high of $3.93.
Trade approach: A movement as big as 12.17% is a significantly bullish indicator, so this trade is designed to be profitable if BVS maintains its current direction and does not revert back to pricing on the bearish side of $3.87 on 20-Oct-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 BIOVENTUS INC. CLASS A COMMON STOCK closes at or above $3.90 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.06% 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.