Quantchabot has detected a new Bull Call Spread trade opportunity for FRANCO-NEVADA (FNV) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FNV was recently trading at $138.21 and has an implied volatility of 25.23% for this period. Based on an analysis of the options available for FNV expiring on 21-Feb-2025, there is a 34.27% likelihood that the underlying will close within the analyzed range of $138.51-$146.40 at expiration. In this scenario, the average linear return for the trade would be 10.76%.
52 week high: FRANCO-NEVADA recently reached a new 52-week high at $139.68. FNV had traded in the range $103.64-$138.34 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 FNV maintains its current direction and does not revert back to pricing on the bearish side of $138.21 on 21-Feb-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 FRANCO-NEVADA closes at or above $137.90 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 53.17% 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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