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Quantchabot has detected a promising Bear Call Spread trade opportunity for CYTOKINETICS INCORPORATED COM (CYTK) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CYTK was recently trading at $15.75 and has an implied volatility of 116.39% for this period. Based on an analysis of the options available for CYTK expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $13.21-$15.75 at expiration. In this scenario, the average linear return for the trade would be 25.00%.
Big -43.05% Change: After closing the last trading session at $27.66, CYTOKINETICS INCORPORATED COM opened today at $17.45 and has reached a low of $15.24.
Trade approach: A movement as big as -43.05% is a significantly bearish indicator, so this trade is designed to be profitable if CYTK maintains its current direction and does not revert back to pricing on the bullish side of $15.75 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 bearish strategy, the trade would be profitable if CYTOKINETICS INCORPORATED COM closes at or below $16.40 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 59.07% 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.