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Quantchabot has detected a promising Bull Put Spread trade opportunity for KODIAK SCIENCES LTD (KOD) for the 20-Mar-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KOD was recently trading at $80.38 and has an implied volatility of 64.23% for this period. Based on an analysis of the options available for KOD expiring on 20-Mar-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $80.53-$101.87 at expiration. In this scenario, the average linear return for the trade would be 37.38%.
Big 8.70% Change: After closing the last trading session at $73.95, KODIAK SCIENCES LTD opened today at $74.54 and has reached a high of $82.75.
Trade approach: A movement as big as 8.70% is a significantly bullish indicator, so this trade is designed to be profitable if KOD maintains its current direction and does not revert back to pricing on the bearish side of $80.38 on 20-Mar-2020. 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 KODIAK SCIENCES LTD closes at or above $79.10 on 20-Mar-2020. Based on our risk-neutral analysis, there is a 53.03% 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.