Quantchabot has detected a promising Bull Call Spread trade opportunity for CYMABAY THERAPEUTICS INC. COMM (CBAY) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CBAY was recently trading at $17.40 and has an implied volatility of 67.19% for this period. Based on an analysis of the options available for CBAY expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $17.51-$21.85 at expiration. In this scenario, the average linear return for the trade would be 10.77%.
Big 7.14% Change: After closing the last trading session at $16.24, CYMABAY THERAPEUTICS INC. COMM opened today at $16.03 and has reached a high of $17.83.
Trade approach: A movement as big as 7.14% is a significantly bullish indicator, so this trade is designed to be profitable if CBAY maintains its current direction and does not revert back to pricing on the bearish side of $17.40 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 CYMABAY THERAPEUTICS INC. COMM closes at or above $17.05 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 54.77% 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.