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Quantchabot has detected a promising Covered Call trade opportunity for KARYOPHARM THERAPEUTICS INC. C (KPTI) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
KPTI was recently trading at $20.46 and has an implied volatility of 74.93% for this period. Based on an analysis of the options available for KPTI expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $20.47-$27.47 at expiration. In this scenario, the average linear return for the trade would be 17.51%.
Big 7.06% Change: After closing the last trading session at $19.11, KARYOPHARM THERAPEUTICS INC. C opened today at $19.21 and has reached a high of $20.83.
Trade approach: A movement as big as 7.06% is a significantly bullish indicator, so this trade is designed to be profitable if KPTI maintains its current direction and does not revert back to pricing on the bearish side of $20.46 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 KARYOPHARM THERAPEUTICS INC. C closes at or above $19.73 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 54.95% 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.