Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for DECIPHERA PHARMACEUTICALS INC. COMMON STOCK (DCPH) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DCPH was recently trading at $59.80 and has an implied volatility of 81.74% for this period. Based on an analysis of the options available for DCPH expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $53.20-$59.82 at expiration. In this scenario, the average linear return for the trade would be 18.34%.
Big -13.83% Change: After closing the last trading session at $69.39, DECIPHERA PHARMACEUTICALS INC. COMMON STOCK opened today at $63.06 and has reached a low of $58.19.
Trade approach: A movement as big as -13.83% is a significantly bearish indicator, so this trade is designed to be profitable if DCPH maintains its current direction and does not revert back to pricing on the bullish side of $59.80 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 DECIPHERA PHARMACEUTICALS INC. COMMON STOCK closes at or below $61.55 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 59.62% 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.