Big Loser Alert: Trading today’s -9.2% move in INTRA-CELLULAR THERAPIES INC. $ITCI

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for INTRA-CELLULAR THERAPIES INC. (ITCI) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ITCI was recently trading at $33.30 and has an implied volatility of 88.62% for this period. Based on an analysis of the options available for ITCI expiring on 21-Feb-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $23.83-$33.39 at expiration. In this scenario, the average linear return for the trade would be 68.95%.

Big -9.22% Change: After closing the last trading session at $36.68, INTRA-CELLULAR THERAPIES INC. opened today at $36.26 and has reached a low of $32.90.

Trade approach: A movement as big as -9.22% is a significantly bearish indicator, so this trade is designed to be profitable if ITCI maintains its current direction and does not revert back to pricing on the bullish side of $33.30 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 INTRA-CELLULAR THERAPIES INC. closes at or below $34.55 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 54.02% 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.