Quantchabot has detected a new Bull Call Spread trade opportunity for MIND MEDICINE (MINDMED) INC. (MNMD) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MNMD was recently trading at $7.35 and has an implied volatility of 90.86% for this period. Based on an analysis of the options available for MNMD expiring on 21-Feb-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $7.37-$9.05 at expiration. In this scenario, the average linear return for the trade would be 11.48%.
Big 8.25% Change: After closing the last trading session at $6.79, MIND MEDICINE (MINDMED) INC. opened today at $6.55 and has reached a high of $7.45.
Trade approach: A movement as big as 8.25% is a significantly bullish indicator, so this trade is designed to be profitable if MNMD maintains its current direction and does not revert back to pricing on the bearish side of $7.35 on 21-Feb-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 MIND MEDICINE (MINDMED) INC. closes at or above $7.35 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 50.44% 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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