Quantchabot has detected a new Bull Call Spread trade opportunity for ANAVEX LIFE SCIENCES CORP. COMMON STOCK (AVXL) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AVXL was recently trading at $12.20 and has an implied volatility of 111.14% for this period. Based on an analysis of the options available for AVXL expiring on 17-Jan-2025, there is a 34.24% likelihood that the underlying will close within the analyzed range of $12.24-$16.35 at expiration. In this scenario, the average linear return for the trade would be 11.89%.
Big 9.12% Change: After closing the last trading session at $11.18, ANAVEX LIFE SCIENCES CORP. COMMON STOCK opened today at $11.52 and has reached a high of $12.35.
Trade approach: A movement as big as 9.12% is a significantly bullish indicator, so this trade is designed to be profitable if AVXL maintains its current direction and does not revert back to pricing on the bearish side of $12.20 on 17-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 ANAVEX LIFE SCIENCES CORP. COMMON STOCK closes at or above $11.85 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 54.44% 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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