Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Bear Call Spread trade opportunity for NOVAGOLD RESOURCES (NG) for the 17-Sep-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. NG was recently trading at $7.66 and has an implied volatility of 40.98% for this period. Based on an analysis of the options available for NG expiring on 17-Sep-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.49-$7.66 at expiration. In this scenario, the average linear return for the trade would be 24.31%. 52 week low: NOVAGOLD RESOURCES recently reached a new 52-week low at $7.60. NG had traded in the range $7.85-$12.10 over the past year. Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if NG maintains its current direction and does not revert back to pricing on the bullish side of $7.66 on 17-Sep-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit. Upside potential: Using this bearish strategy, the trade would be profitable if NOVAGOLD RESOURCES closes at or below $7.75 on 17-Sep-2021. Based on our risk-neutral analysis, there is a 52.76% 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.