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Quantchabot has detected a promising Bear Call Spread trade opportunity for EXACT SCIENCES (EXAS) for the 14-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EXAS was recently trading at $93.19 and has an implied volatility of 55.95% for this period. Based on an analysis of the options available for EXAS expiring on 14-Feb-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $79.77-$93.33 at expiration. In this scenario, the average linear return for the trade would be 46.67%.
Big -10.78% Change: After closing the last trading session at $104.44, EXACT SCIENCES opened today at $95.51 and has reached a low of $90.05.
Trade approach: A movement as big as -10.78% is a significantly bearish indicator, so this trade is designed to be profitable if EXAS maintains its current direction and does not revert back to pricing on the bullish side of $93.19 on 14-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 EXACT SCIENCES closes at or below $95.80 on 14-Feb-2020. Based on our risk-neutral analysis, there is a 56.62% 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.