Quantchabot has detected a new Bear Call Spread trade opportunity for NOVO-NORDISK (NVO) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NVO was recently trading at $68.56 and has an implied volatility of 52.86% for this period. Based on an analysis of the options available for NVO expiring on 2-May-2025, there is a 34.20% likelihood that the underlying will close within the analyzed range of $58.77-$68.84 at expiration. In this scenario, the average linear return for the trade would be 29.93%.
52 week low: NOVO-NORDISK recently reached a new 52-week low at $66.88. NVO had traded in the range $69.18-$148.15 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if NVO maintains its current direction and does not revert back to pricing on the bullish side of $68.56 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 bearish strategy, the trade would be profitable if NOVO-NORDISK closes at or below $68.86 on 2-May-2025. Based on our risk-neutral analysis, there is a 50.10% 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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