Big Gainer Alert: Trading today’s 9.5% move in BIOHAVEN PHARMACEUTICAL HOLDING CO LTD $BHVN

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Quantchabot has detected a promising Bull Put Spread trade opportunity for BIOHAVEN PHARMACEUTICAL HOLDING CO LTD (BHVN) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BHVN was recently trading at $72.06 and has an implied volatility of 63.62% for this period. Based on an analysis of the options available for BHVN expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $72.06-$79.75 at expiration. In this scenario, the average linear return for the trade would be 20.26%.

Big 9.55% Change: After closing the last trading session at $65.78, BIOHAVEN PHARMACEUTICAL HOLDING CO LTD opened today at $70.38 and has reached a high of $74.61.

Trade approach: A movement as big as 9.55% is a significantly bullish indicator, so this trade is designed to be profitable if BHVN maintains its current direction and does not revert back to pricing on the bearish side of $72.06 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 BIOHAVEN PHARMACEUTICAL HOLDING CO LTD closes at or above $71.90 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 50.89% 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.