Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Covered Put trade opportunity for MIRATI THERAPEUTICS INC. COMM (MRTX) for the 21-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MRTX was recently trading at $101.95 and has an implied volatility of 72.52% for this period. Based on an analysis of the options available for MRTX expiring on 21-Feb-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $78.75-$102.17 at expiration. In this scenario, the average linear return for the trade would be 28.40%.
Big -10.83% Change: After closing the last trading session at $114.33, MIRATI THERAPEUTICS INC. COMM opened today at $112.00 and has reached a low of $96.01.
Trade approach: A movement as big as -10.83% is a significantly bearish indicator, so this trade is designed to be profitable if MRTX maintains its current direction and does not revert back to pricing on the bullish side of $101.95 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 MIRATI THERAPEUTICS INC. COMM closes at or below $106.54 on 21-Feb-2020. Based on our risk-neutral analysis, there is a 56.39% 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.