Big Loser Alert: Trading today’s -12.2% move in VIATRIS INC $VTRS

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Quantchabot has detected a promising Bear Call Spread trade opportunity for VIATRIS INC (VTRS) for the 26-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

VTRS was recently trading at $15.98 and has an implied volatility of 59.34% for this period. Based on an analysis of the options available for VTRS expiring on 26-Feb-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $14.98-$15.98 at expiration. In this scenario, the average linear return for the trade would be 25.00%.

Big -12.25% Change: After closing the last trading session at $18.21, VIATRIS INC opened today at $16.55 and has reached a low of $15.92.

Trade approach: A movement as big as -12.25% is a significantly bearish indicator, so this trade is designed to be profitable if VTRS maintains its current direction and does not revert back to pricing on the bullish side of $15.98 on 26-Feb-2021. 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 VIATRIS INC closes at or below $16.10 on 26-Feb-2021. Based on our risk-neutral analysis, there is a 54.59% 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.