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Quantchabot has detected a promising Bull Put Spread trade opportunity for MESOBLAST LIMITED AMERICAN DEPOSITARY SHARES (MESO) for the 15-Jan-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MESO was recently trading at $13.62 and has an implied volatility of 185.50% for this period. Based on an analysis of the options available for MESO expiring on 15-Jan-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $13.62-$28.24 at expiration. In this scenario, the average linear return for the trade would be 121.85%.
Big 15.52% Change: After closing the last trading session at $11.79, MESOBLAST LIMITED AMERICAN DEPOSITARY SHARES opened today at $13.88 and has reached a high of $13.93.
Trade approach: A movement as big as 15.52% is a significantly bullish indicator, so this trade is designed to be profitable if MESO maintains its current direction and does not revert back to pricing on the bearish side of $13.62 on 15-Jan-2021. 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 MESOBLAST LIMITED AMERICAN DEPOSITARY SHARES closes at or above $12.20 on 15-Jan-2021. Based on our risk-neutral analysis, there is a 56.02% 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.