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Quantchabot has detected a promising Bull Put Spread trade opportunity for APELLIS PHARMACEUTICALS INC. COMMON STOCK (APLS) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APLS was recently trading at $35.85 and has an implied volatility of 90.63% for this period. Based on an analysis of the options available for APLS expiring on 21-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $35.93-$49.13 at expiration. In this scenario, the average linear return for the trade would be 31.10%.
Big 18.75% Change: After closing the last trading session at $30.19, APELLIS PHARMACEUTICALS INC. COMMON STOCK opened today at $40.89 and has reached a high of $42.48.
Trade approach: A movement as big as 18.75% is a significantly bullish indicator, so this trade is designed to be profitable if APLS maintains its current direction and does not revert back to pricing on the bearish side of $35.85 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 bullish strategy, the trade would be profitable if APELLIS PHARMACEUTICALS INC. COMMON STOCK closes at or above $35.80 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 50.45% 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.