Quantchabot has detected a promising Bull Call Spread trade opportunity for MOONLAKE IMMUNOTHERAPEUTICL A (MLTX) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MLTX was recently trading at $60.95 and has an implied volatility of 120.17% for this period. Based on an analysis of the options available for MLTX expiring on 20-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $61.32-$90.70 at expiration. In this scenario, the average linear return for the trade would be 14.16%.
Big 15.83% Change: After closing the last trading session at $52.62, MOONLAKE IMMUNOTHERAPEUTICL A opened today at $62.26 and has reached a high of $62.69.
Trade approach: A movement as big as 15.83% is a significantly bullish indicator, so this trade is designed to be profitable if MLTX maintains its current direction and does not revert back to pricing on the bearish side of $60.95 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 MOONLAKE IMMUNOTHERAPEUTICL A closes at or above $51.90 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 66.53% 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.