Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Covered Call trade opportunity for FATE THERAPEUTICS INC. COMMON (FATE) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FATE was recently trading at $32.90 and has an implied volatility of 82.77% for this period. Based on an analysis of the options available for FATE expiring on 17-Jul-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $32.91-$45.56 at expiration. In this scenario, the average linear return for the trade would be 18.06%.
52 week high: FATE THERAPEUTICS INC. COMMON recently reached a new 52-week high at $34.07. FATE had traded in the range $12.59-$32.39 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if FATE maintains its current direction and does not revert back to pricing on the bearish side of $32.90 on 17-Jul-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 FATE THERAPEUTICS INC. COMMON closes at or above $31.74 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 54.43% 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.