Quantchabot has detected a new Bull Call Spread trade opportunity for NEW GOLD (NGD) for the 18-Jul-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NGD was recently trading at $4.65 and has an implied volatility of 47.67% for this period. Based on an analysis of the options available for NGD expiring on 18-Jul-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $4.68-$5.52 at expiration. In this scenario, the average linear return for the trade would be 10.40%.
52 week high: NEW GOLD recently reached a new 52-week high at $4.76. NGD had traded in the range $1.90-$4.72 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 NGD maintains its current direction and does not revert back to pricing on the bearish side of $4.65 on 18-Jul-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 NEW GOLD closes at or above $4.60 on 18-Jul-2025. Based on our risk-neutral analysis, there is a 53.88% 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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