Quantchabot has detected a new Covered Call trade opportunity for DENALI THERAPEUTICS INC. COMMON STOCK (DNLI) for the 17-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DNLI was recently trading at $14.46 and has an implied volatility of 118.64% for this period. Based on an analysis of the options available for DNLI expiring on 17-Apr-2025, there is a 34.26% likelihood that the underlying will close within the analyzed range of $14.49-$18.51 at expiration. In this scenario, the average linear return for the trade would be 11.93%.
Big 17.66% Change: After closing the last trading session at $12.29, DENALI THERAPEUTICS INC. COMMON STOCK opened today at $12.07 and has reached a high of $14.83.
Trade approach: A movement as big as 17.66% is a significantly bullish indicator, so this trade is designed to be profitable if DNLI maintains its current direction and does not revert back to pricing on the bearish side of $14.46 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 DENALI THERAPEUTICS INC. COMMON STOCK closes at or above $14.44 on 17-Apr-2025. Based on our risk-neutral analysis, there is a 50.54% 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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