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Quantchabot has detected a promising Bull Call Spread trade opportunity for INVITAE CORP (NVTA) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NVTA was recently trading at $55.91 and has an implied volatility of 74.29% for this period. Based on an analysis of the options available for NVTA expiring on 15-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $55.92-$71.37 at expiration. In this scenario, the average linear return for the trade would be 98.67%.

Big 9.89% Change: After closing the last trading session at $50.88, INVITAE CORP opened today at $51.48 and has reached a high of $56.05.

Trade approach: A movement as big as 9.89% is a significantly bullish indicator, so this trade is designed to be profitable if NVTA maintains its current direction and does not revert back to pricing on the bearish side of $55.91 on 15-Jan-2021. 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 INVITAE CORP closes at or above $55.90 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 50.06% 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.