Quantchabot has detected a promising Bull Call Spread trade opportunity for ULTRAGENYX PHARMACEUTICAL INC. (RARE) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RARE was recently trading at $34.49 and has an implied volatility of 89.30% for this period. Based on an analysis of the options available for RARE expiring on 20-Oct-2023, there is a 35.37% likelihood that the underlying will close within the analyzed range of $34.50-$36.69 at expiration. In this scenario, the average linear return for the trade would be 13.32%.
Big 8.70% Change: After closing the last trading session at $31.73, ULTRAGENYX PHARMACEUTICAL INC. opened today at $32.94 and has reached a high of $34.74.
Trade approach: A movement as big as 8.70% is a significantly bullish indicator, so this trade is designed to be profitable if RARE maintains its current direction and does not revert back to pricing on the bearish side of $34.49 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 ULTRAGENYX PHARMACEUTICAL INC. closes at or above $34.35 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 52.94% 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.