Quantchabot has detected a new Bull Call Spread trade opportunity for WHEATON PRECIOUS METALS CORP (WPM) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WPM was recently trading at $74.43 and has an implied volatility of 34.35% for this period. Based on an analysis of the options available for WPM expiring on 2-May-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $74.88-$85.01 at expiration. In this scenario, the average linear return for the trade would be 10.27%.
52 week high: WHEATON PRECIOUS METALS CORP recently reached a new 52-week high at $74.49. WPM had traded in the range $43.18-$72.00 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 WPM maintains its current direction and does not revert back to pricing on the bearish side of $74.43 on 2-May-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 WHEATON PRECIOUS METALS CORP closes at or above $73.30 on 2-May-2025. Based on our risk-neutral analysis, there is a 56.70% 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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