Quantchabot has detected a new Bull Call Spread trade opportunity for TEVA PHARMACEUTICAL (TEVA) for the 24-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TEVA was recently trading at $22.38 and has an implied volatility of 30.60% for this period. Based on an analysis of the options available for TEVA expiring on 24-Jan-2025, there is a 34.21% likelihood that the underlying will close within the analyzed range of $22.47-$24.59 at expiration. In this scenario, the average linear return for the trade would be 11.06%.
52 week high: TEVA PHARMACEUTICAL recently reached a new 52-week high at $22.46. TEVA had traded in the range $10.34-$22.17 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if TEVA maintains its current direction and does not revert back to pricing on the bearish side of $22.38 on 24-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 TEVA PHARMACEUTICAL closes at or above $22.08 on 24-Jan-2025. Based on our risk-neutral analysis, there is a 57.68% 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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