Big Gainer Alert: Trading today’s 7.8% move in SIGMA LITHIUM CORPORATION COMMON SHARES $SGML

Quantchabot has detected a promising Bull Call Spread trade opportunity for SIGMA LITHIUM CORPORATION COMMON SHARES (SGML) for the 15-Sep-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SGML was recently trading at $34.29 and has an implied volatility of 33.11% for this period. Based on an analysis of the options available for SGML expiring on 15-Sep-2023, there is a 34.32% likelihood that the underlying will close within the analyzed range of $34.35-$36.34 at expiration. In this scenario, the average linear return for the trade would be 13.30%.

Big 7.76% Change: After closing the last trading session at $31.82, SIGMA LITHIUM CORPORATION COMMON SHARES opened today at $32.24 and has reached a high of $34.36.

Trade approach: A movement as big as 7.76% is a significantly bullish indicator, so this trade is designed to be profitable if SGML maintains its current direction and does not revert back to pricing on the bearish side of $34.29 on 15-Sep-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 SIGMA LITHIUM CORPORATION COMMON SHARES closes at or above $34.30 on 15-Sep-2023. Based on our risk-neutral analysis, there is a 50.95% 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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