Quantchabot has detected a new Bull Call Spread trade opportunity for FIRST MAJESTIC SILVER (AG) for the 14-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AG was recently trading at $6.22 and has an implied volatility of 57.59% for this period. Based on an analysis of the options available for AG expiring on 14-Feb-2025, there is a 34.37% likelihood that the underlying will close within the analyzed range of $6.23-$6.87 at expiration. In this scenario, the average linear return for the trade would be 17.68%.
Big 8.93% Change: After closing the last trading session at $5.71, FIRST MAJESTIC SILVER opened today at $5.87 and has reached a high of $6.22.
Trade approach: A movement as big as 8.93% is a significantly bullish indicator, so this trade is designed to be profitable if AG maintains its current direction and does not revert back to pricing on the bearish side of $6.22 on 14-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 FIRST MAJESTIC SILVER closes at or above $6.14 on 14-Feb-2025. Based on our risk-neutral analysis, there is a 55.81% 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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