Quantchabot has detected a new Bull Call Spread trade opportunity for ELANCO ANIMAL HEALTH INC (ELAN) for the 20-Feb-2026 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ELAN was recently trading at $24.89 and has an implied volatility of 38.10% for this period. Based on an analysis of the options available for ELAN expiring on 20-Feb-2026, there is a 34.22% likelihood that the underlying will close within the analyzed range of $24.97-$27.83 at expiration. In this scenario, the average linear return for the trade would be 19.98%.
52 week high: ELANCO ANIMAL HEALTH INC recently reached a new 52-week high at $25.29. ELAN had traded in the range $8.02-$24.98 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 ELAN maintains its current direction and does not revert back to pricing on the bearish side of $24.89 on 20-Feb-2026. 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 ELANCO ANIMAL HEALTH INC closes at or above $24.50 on 20-Feb-2026. Based on our risk-neutral analysis, there is a 56.93% 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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