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Quantchabot has detected a promising Short Risk Reversal trade opportunity for IMMUNITYBIO INC (IBRX) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IBRX was recently trading at $19.94 and has an implied volatility of 103.12% for this period. Based on an analysis of the options available for IBRX expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.77-$19.94 at expiration. In this scenario, the average linear return for the trade would be 34.00%.
Big -8.03% Change: After closing the last trading session at $21.68, IMMUNITYBIO INC opened today at $21.50 and has reached a low of $19.94.
Trade approach: A movement as big as -8.03% is a significantly bearish indicator, so this trade is designed to be profitable if IBRX maintains its current direction and does not revert back to pricing on the bullish side of $19.94 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 bearish strategy, the trade would be profitable if IMMUNITYBIO INC closes at or below $19.95 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 50.11% 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.