Quantchabot has detected a promising Bull Call Spread trade opportunity for NOVO-NORDISK (NVO) for the 27-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NVO was recently trading at $198.11 and has an implied volatility of 28.09% for this period. Based on an analysis of the options available for NVO expiring on 27-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $199.55-$220.64 at expiration. In this scenario, the average linear return for the trade would be 10.19%.
52 week high: NOVO-NORDISK recently reached a new 52-week high at $198.50. NVO had traded in the range $95.02-$197.54 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 NVO maintains its current direction and does not revert back to pricing on the bearish side of $198.11 on 27-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 NOVO-NORDISK closes at or above $198.55 on 27-Oct-2023. Based on our risk-neutral analysis, there is a 51.99% 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.