Quantchabot has detected a new Bear Call Spread trade opportunity for NOVAGOLD RESOURCES (NG) for the 20-Jun-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NG was recently trading at $4.63 and has an implied volatility of 67.93% for this period. Based on an analysis of the options available for NG expiring on 20-Jun-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $3.57-$4.66 at expiration. In this scenario, the average linear return for the trade would be 33.74%.
Big -7.03% Change: After closing the last trading session at $4.98, NOVAGOLD RESOURCES opened today at $4.90 and has reached a low of $4.60.
Trade approach: A movement as big as -7.03% is a significantly bearish indicator, so this trade is designed to be profitable if NG maintains its current direction and does not revert back to pricing on the bullish side of $4.63 on 20-Jun-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 NOVAGOLD RESOURCES closes at or below $4.70 on 20-Jun-2025. Based on our risk-neutral analysis, there is a 51.21% 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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