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Quantchabot has detected a promising Bear Call Spread trade opportunity for AMYRIS (AMRS) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMRS was recently trading at $15.56 and has an implied volatility of 96.26% for this period. Based on an analysis of the options available for AMRS expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $13.45-$15.56 at expiration. In this scenario, the average linear return for the trade would be 47.81%.
Big -7.77% Change: After closing the last trading session at $16.87, AMYRIS opened today at $15.78 and has reached a low of $15.52.
Trade approach: A movement as big as -7.77% is a significantly bearish indicator, so this trade is designed to be profitable if AMRS maintains its current direction and does not revert back to pricing on the bullish side of $15.56 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 AMYRIS closes at or below $15.70 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 52.44% 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.