Quantchabot has detected a new Bull Call Spread trade opportunity for IAMGOLD (IAG) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IAG was recently trading at $5.54 and has an implied volatility of 56.60% for this period. Based on an analysis of the options available for IAG expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $5.57-$6.67 at expiration. In this scenario, the average linear return for the trade would be 20.56%.
Big 8.41% Change: After closing the last trading session at $5.11, IAMGOLD opened today at $5.17 and has reached a high of $5.54.
Trade approach: A movement as big as 8.41% is a significantly bullish indicator, so this trade is designed to be profitable if IAG maintains its current direction and does not revert back to pricing on the bearish side of $5.54 on 17-Apr-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 IAMGOLD closes at or above $5.40 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 56.61% 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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