Quantchabot has detected a promising Bull Call Spread trade opportunity for CRINETICS PHARMACEUTICALS INC. (CRNX) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CRNX was recently trading at $29.43 and has an implied volatility of 78.80% for this period. Based on an analysis of the options available for CRNX expiring on 20-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $29.61-$38.26 at expiration. In this scenario, the average linear return for the trade would be 11.32%.
Big 12.85% Change: After closing the last trading session at $26.08, CRINETICS PHARMACEUTICALS INC. opened today at $27.00 and has reached a high of $29.68.
Trade approach: A movement as big as 12.85% is a significantly bullish indicator, so this trade is designed to be profitable if CRNX maintains its current direction and does not revert back to pricing on the bearish side of $29.43 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 CRINETICS PHARMACEUTICALS INC. closes at or above $27.70 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 60.27% 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.