Quantchabot has detected a new Bull Call Spread trade opportunity for VIKING THERAPEUTICS INC. COMMON STOCK (VKTX) for the 31-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VKTX was recently trading at $44.55 and has an implied volatility of 98.92% for this period. Based on an analysis of the options available for VKTX expiring on 31-Jan-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $44.78-$62.82 at expiration. In this scenario, the average linear return for the trade would be 17.65%.
Big 7.37% Change: After closing the last trading session at $41.49, VIKING THERAPEUTICS INC. COMMON STOCK opened today at $44.18 and has reached a high of $45.00.
Trade approach: A movement as big as 7.37% is a significantly bullish indicator, so this trade is designed to be profitable if VKTX maintains its current direction and does not revert back to pricing on the bearish side of $44.55 on 31-Jan-2025. 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 VIKING THERAPEUTICS INC. COMMON STOCK closes at or above $40.20 on 31-Jan-2025. Based on our risk-neutral analysis, there is a 62.55% 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.
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