Quantchabot has detected a promising Bull Call Spread trade opportunity for NOVOCURE LIMITED ORDINARY SHARES (NVCR) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NVCR was recently trading at $20.12 and has an implied volatility of 63.59% for this period. Based on an analysis of the options available for NVCR expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $20.29-$25.84 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
Big 8.17% Change: After closing the last trading session at $18.61, NOVOCURE LIMITED ORDINARY SHARES opened today at $18.59 and has reached a high of $20.28.
Trade approach: A movement as big as 8.17% is a significantly bullish indicator, so this trade is designed to be profitable if NVCR maintains its current direction and does not revert back to pricing on the bearish side of $20.12 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 NOVOCURE LIMITED ORDINARY SHARES closes at or above $19.50 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 56.55% 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.