Big Gainer Alert: Trading today’s 7.1% move in ARROWHEAD PHARMACEUTICALS INC. $ARWR

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Quantchabot has detected a promising Bull Put Spread trade opportunity for ARROWHEAD PHARMACEUTICALS INC. (ARWR) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ARWR was recently trading at $47.60 and has an implied volatility of 70.53% for this period. Based on an analysis of the options available for ARWR expiring on 20-Nov-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $47.61-$59.47 at expiration. In this scenario, the average linear return for the trade would be 64.52%.

Big 7.06% Change: After closing the last trading session at $44.46, ARROWHEAD PHARMACEUTICALS INC. opened today at $48.19 and has reached a high of $49.38.

Trade approach: A movement as big as 7.06% is a significantly bullish indicator, so this trade is designed to be profitable if ARWR maintains its current direction and does not revert back to pricing on the bearish side of $47.60 on 20-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 ARROWHEAD PHARMACEUTICALS INC. closes at or above $47.45 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 50.59% 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.