Quantchabot has detected a new Bull Call Spread trade opportunity for PAN AMERICAN SILVER (PAAS) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PAAS was recently trading at $25.86 and has an implied volatility of 40.81% for this period. Based on an analysis of the options available for PAAS expiring on 2-May-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $26.02-$30.24 at expiration. In this scenario, the average linear return for the trade would be 25.00%.
52 week high: PAN AMERICAN SILVER recently reached a new 52-week high at $26.10. PAAS had traded in the range $13.52-$26.05 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 PAAS maintains its current direction and does not revert back to pricing on the bearish side of $25.86 on 2-May-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 PAN AMERICAN SILVER closes at or above $25.70 on 2-May-2025. Based on our risk-neutral analysis, there is a 53.25% 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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