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Quantchabot has detected a promising Long Risk Reversal trade opportunity for IONIS PHARMACEUTICALS INC. COMMON STOCK (IONS) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IONS was recently trading at $46.37 and has an implied volatility of 45.47% for this period. Based on an analysis of the options available for IONS expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $46.37-$51.33 at expiration. In this scenario, the average linear return for the trade would be 24.22%.
Big 7.96% Change: After closing the last trading session at $42.95, IONIS PHARMACEUTICALS INC. COMMON STOCK opened today at $45.51 and has reached a high of $47.00.
Trade approach: A movement as big as 7.96% is a significantly bullish indicator, so this trade is designed to be profitable if IONS maintains its current direction and does not revert back to pricing on the bearish side of $46.37 on 16-Apr-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 IONIS PHARMACEUTICALS INC. COMMON STOCK closes at or above $46.20 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.44% 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.