Quantchabot has detected a new Bull Call Spread trade opportunity for GUARDANT HEALTH INC (GH) for the 17-Jan-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GH was recently trading at $36.70 and has an implied volatility of 64.49% for this period. Based on an analysis of the options available for GH expiring on 17-Jan-2025, there is a 34.35% likelihood that the underlying will close within the analyzed range of $36.76-$41.26 at expiration. In this scenario, the average linear return for the trade would be 10.26%.
Big 8.72% Change: After closing the last trading session at $33.76, GUARDANT HEALTH INC opened today at $33.90 and has reached a high of $37.02.
Trade approach: A movement as big as 8.72% is a significantly bullish indicator, so this trade is designed to be profitable if GH maintains its current direction and does not revert back to pricing on the bearish side of $36.70 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 GUARDANT HEALTH INC closes at or above $36.45 on 17-Jan-2025. Based on our risk-neutral analysis, there is a 52.93% 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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