Big Loser Alert: Trading today’s -7.1% move in NOVAVAX $NVAX

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Quantchabot has detected a promising Covered Put trade opportunity for NOVAVAX (NVAX) for the 17-Jul-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NVAX was recently trading at $46.49 and has an implied volatility of 156.98% for this period. Based on an analysis of the options available for NVAX expiring on 17-Jul-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $25.11-$46.51 at expiration. In this scenario, the average linear return for the trade would be 302.17%.

Big -7.14% Change: After closing the last trading session at $50.07, NOVAVAX opened today at $48.50 and has reached a low of $46.04.

Trade approach: A movement as big as -7.14% is a significantly bearish indicator, so this trade is designed to be profitable if NVAX maintains its current direction and does not revert back to pricing on the bullish side of $46.49 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 bearish strategy, the trade would be profitable if NOVAVAX closes at or below $67.32 on 17-Jul-2020. Based on our risk-neutral analysis, there is a 72.57% 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.