Quantchabot has detected a new Bull Call Spread trade opportunity for SIGMA LITHIUM CORPORATION COMMON SHARES (SGML) for the 21-Mar-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SGML was recently trading at $11.49 and has an implied volatility of 69.17% for this period. Based on an analysis of the options available for SGML expiring on 21-Mar-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $11.55-$14.76 at expiration. In this scenario, the average linear return for the trade would be 19.14%.
Big 11.77% Change: After closing the last trading session at $10.28, SIGMA LITHIUM CORPORATION COMMON SHARES opened today at $10.39 and has reached a high of $11.55.
Trade approach: A movement as big as 11.77% is a significantly bullish indicator, so this trade is designed to be profitable if SGML maintains its current direction and does not revert back to pricing on the bearish side of $11.49 on 21-Mar-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 SIGMA LITHIUM CORPORATION COMMON SHARES closes at or above $11.00 on 21-Mar-2025. Based on our risk-neutral analysis, there is a 57.98% 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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