Quantchabot has detected a new Bull Call Spread trade opportunity for NEW GOLD (NGD) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NGD was recently trading at $3.27 and has an implied volatility of 48.15% for this period. Based on an analysis of the options available for NGD expiring on 17-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $3.28-$3.80 at expiration. In this scenario, the average linear return for the trade would be 10.97%.
52 week high: NEW GOLD recently reached a new 52-week high at $3.31. NGD had traded in the range $1.52-$3.25 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if NGD maintains its current direction and does not revert back to pricing on the bearish side of $3.27 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 NEW GOLD closes at or above $3.25 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 52.38% 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.
Leave a Reply
You must be logged in to post a comment.