Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bull Put Spread trade opportunity for IOVANCE BIOTHERAPEUTICS INC. COMMON STOCK (IOVA) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IOVA was recently trading at $39.31 and has an implied volatility of 90.29% for this period. Based on an analysis of the options available for IOVA expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $39.32-$56.06 at expiration. In this scenario, the average linear return for the trade would be 32.14%.
52 week high: IOVANCE BIOTHERAPEUTICS INC. COMMON STOCK recently reached a new 52-week high at $40.00. IOVA had traded in the range $15.64-$39.00 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 IOVA maintains its current direction and does not revert back to pricing on the bearish side of $39.31 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 IOVANCE BIOTHERAPEUTICS INC. COMMON STOCK closes at or above $39.15 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 50.49% 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.