Quantchabot has detected a promising Bull Call Spread trade opportunity for CASSAVA SCIENCES INC (SAVA) for the 3-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SAVA was recently trading at $14.02 and has an implied volatility of 125.44% for this period. Based on an analysis of the options available for SAVA expiring on 3-Nov-2023, there is a 34.25% likelihood that the underlying will close within the analyzed range of $14.05-$18.53 at expiration. In this scenario, the average linear return for the trade would be 10.22%.
Big 10.88% Change: After closing the last trading session at $12.64, CASSAVA SCIENCES INC opened today at $12.75 and has reached a high of $14.27.
Trade approach: A movement as big as 10.88% is a significantly bullish indicator, so this trade is designed to be profitable if SAVA maintains its current direction and does not revert back to pricing on the bearish side of $14.02 on 3-Nov-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 CASSAVA SCIENCES INC closes at or above $13.95 on 3-Nov-2023. Based on our risk-neutral analysis, there is a 51.07% 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.