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Quantchabot has detected a promising Covered Put trade opportunity for OPKO HEALTH (OPK) for the 18-Sep-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
OPK was recently trading at $5.24 and has an implied volatility of 121.50% for this period. Based on an analysis of the options available for OPK expiring on 18-Sep-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $3.35-$5.24 at expiration. In this scenario, the average linear return for the trade would be 115.04%.
Big -11.34% Change: After closing the last trading session at $5.91, OPKO HEALTH opened today at $5.62 and has reached a low of $5.17.
Trade approach: A movement as big as -11.34% is a significantly bearish indicator, so this trade is designed to be profitable if OPK maintains its current direction and does not revert back to pricing on the bullish side of $5.24 on 18-Sep-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 OPKO HEALTH closes at or below $7.46 on 18-Sep-2020. Based on our risk-neutral analysis, there is a 78.53% 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.