Big Gainer Alert: Trading today’s 7.6% move in 89BIO INC. $ETNB

Quantchabot has detected a new Bull Call Spread trade opportunity for 89BIO INC. (ETNB) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ETNB was recently trading at $10.00 and has an implied volatility of 66.44% for this period. Based on an analysis of the options available for ETNB expiring on 21-Feb-2025, there is a 34.28% likelihood that the underlying will close within the analyzed range of $10.02-$11.60 at expiration. In this scenario, the average linear return for the trade would be 21.95%.

Big 7.64% Change: After closing the last trading session at $9.29, 89BIO INC. opened today at $9.61 and has reached a high of $10.01.

Trade approach: A movement as big as 7.64% is a significantly bullish indicator, so this trade is designed to be profitable if ETNB maintains its current direction and does not revert back to pricing on the bearish side of $10.00 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 89BIO INC. closes at or above $9.55 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 62.99% 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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