Quantchabot has detected a new Bull Call Spread trade opportunity for ANAVEX LIFE SCIENCES CORP. COMMON STOCK (AVXL) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AVXL was recently trading at $13.97 and has an implied volatility of 120.79% for this period. Based on an analysis of the options available for AVXL expiring on 17-Jan-2025, there is a 34.25% likelihood that the underlying will close within the analyzed range of $14.01-$18.93 at expiration. In this scenario, the average linear return for the trade would be 12.82%.
52 week high: ANAVEX LIFE SCIENCES CORP. COMMON STOCK recently reached a new 52-week high at $14.00. AVXL had traded in the range $3.25-$12.48 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 AVXL maintains its current direction and does not revert back to pricing on the bearish side of $13.97 on 17-Jan-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 ANAVEX LIFE SCIENCES CORP. COMMON STOCK closes at or above $13.40 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 55.90% 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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