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Quantchabot has detected a promising Long Risk Reversal trade opportunity for APELLIS PHARMACEUTICALS INC. COMMON STOCK (APLS) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APLS was recently trading at $30.03 and has an implied volatility of 65.06% for this period. Based on an analysis of the options available for APLS expiring on 16-Oct-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $30.04-$37.87 at expiration. In this scenario, the average linear return for the trade would be 58.22%.
Big 11.76% Change: After closing the last trading session at $26.87, APELLIS PHARMACEUTICALS INC. COMMON STOCK opened today at $27.16 and has reached a high of $30.09.
Trade approach: A movement as big as 11.76% is a significantly bullish indicator, so this trade is designed to be profitable if APLS maintains its current direction and does not revert back to pricing on the bearish side of $30.03 on 16-Oct-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 APELLIS PHARMACEUTICALS INC. COMMON STOCK closes at or above $29.45 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 53.39% 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.