Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Put Spread trade opportunity for PTC THERAPEUTICS INC. COMMON (PTCT) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PTCT was recently trading at $48.02 and has an implied volatility of 44.85% for this period. Based on an analysis of the options available for PTCT expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $43.88-$48.05 at expiration. In this scenario, the average linear return for the trade would be 36.79%.
Big -10.04% Change: After closing the last trading session at $53.38, PTC THERAPEUTICS INC. COMMON opened today at $47.00 and has reached a low of $46.80.
Trade approach: A movement as big as -10.04% is a significantly bearish indicator, so this trade is designed to be profitable if PTCT maintains its current direction and does not revert back to pricing on the bullish side of $48.02 on 21-Feb-2020. 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 PTC THERAPEUTICS INC. COMMON closes at or below $48.45 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 53.60% 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.