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Quantchabot has detected a promising Covered Put trade opportunity for RAPT THERAPEUTICS INC. (RAPT) for the 20-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RAPT was recently trading at $34.52 and has an implied volatility of 184.92% for this period. Based on an analysis of the options available for RAPT expiring on 20-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $19.26-$34.53 at expiration. In this scenario, the average linear return for the trade would be 55.80%.
Big -7.43% Change: After closing the last trading session at $37.29, RAPT THERAPEUTICS INC. opened today at $35.76 and has reached a low of $34.50.
Trade approach: A movement as big as -7.43% is a significantly bearish indicator, so this trade is designed to be profitable if RAPT maintains its current direction and does not revert back to pricing on the bullish side of $34.52 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 bearish strategy, the trade would be profitable if RAPT THERAPEUTICS INC. closes at or below $41.01 on 20-Nov-2020. Based on our risk-neutral analysis, there is a 61.60% 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.