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Quantchabot has detected a promising Bull Call Spread trade opportunity for SORRENTO THERAPEUTICS INC. C (SRNE) for the 27-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SRNE was recently trading at $12.26 and has an implied volatility of 165.49% for this period. Based on an analysis of the options available for SRNE expiring on 27-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $12.26-$21.98 at expiration. In this scenario, the average linear return for the trade would be 104.93%.
Big 7.43% Change: After closing the last trading session at $11.41, SORRENTO THERAPEUTICS INC. C opened today at $11.55 and has reached a high of $12.31.
Trade approach: A movement as big as 7.43% is a significantly bullish indicator, so this trade is designed to be profitable if SRNE maintains its current direction and does not revert back to pricing on the bearish side of $12.26 on 27-Nov-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 SORRENTO THERAPEUTICS INC. C closes at or above $11.90 on 27-Nov-2020. Based on our risk-neutral analysis, there is a 52.04% 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.