Quantchabot has detected a new Bull Call Spread trade opportunity for SUMMIT THERAPEUTICS PLC AMERIC (SMMT) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SMMT was recently trading at $33.95 and has an implied volatility of 101.25% for this period. Based on an analysis of the options available for SMMT expiring on 2-May-2025, there is a 34.37% likelihood that the underlying will close within the analyzed range of $33.99-$39.75 at expiration. In this scenario, the average linear return for the trade would be 10.54%.
52 week high: SUMMIT THERAPEUTICS PLC AMERIC recently reached a new 52-week high at $34.28. SMMT had traded in the range $2.10-$33.89 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 SMMT maintains its current direction and does not revert back to pricing on the bearish side of $33.95 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 SUMMIT THERAPEUTICS PLC AMERIC closes at or above $33.75 on 2-May-2025. Based on our risk-neutral analysis, there is a 51.82% 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.