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Quantchabot has detected a promising Covered Put trade opportunity for TILRAY INC. CLASS 2 COMMON STOCK (TLRY) for the 13-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TLRY was recently trading at $5.54 and has an implied volatility of 101.31% for this period. Based on an analysis of the options available for TLRY expiring on 13-Nov-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $4.16-$5.54 at expiration. In this scenario, the average linear return for the trade would be 34.38%.
Big -7.36% Change: After closing the last trading session at $5.98, TILRAY INC. CLASS 2 COMMON STOCK opened today at $5.76 and has reached a low of $5.48.
Trade approach: A movement as big as -7.36% is a significantly bearish indicator, so this trade is designed to be profitable if TLRY maintains its current direction and does not revert back to pricing on the bullish side of $5.54 on 13-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 TILRAY INC. CLASS 2 COMMON STOCK closes at or below $5.93 on 13-Nov-2020. Based on our risk-neutral analysis, there is a 59.35% 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.