Big Loser Alert: Trading today’s -14.1% move in VAXART INC $VXRT

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for VAXART INC (VXRT) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

VXRT was recently trading at $9.26 and has an implied volatility of 305.12% for this period. Based on an analysis of the options available for VXRT expiring on 7-May-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $6.63-$9.26 at expiration. In this scenario, the average linear return for the trade would be 93.27%.

Big -14.07% Change: After closing the last trading session at $10.78, VAXART INC opened today at $9.97 and has reached a low of $9.20.

Trade approach: A movement as big as -14.07% is a significantly bearish indicator, so this trade is designed to be profitable if VXRT maintains its current direction and does not revert back to pricing on the bullish side of $9.26 on 7-May-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 VAXART INC closes at or below $11.42 on 7-May-2021. Based on our risk-neutral analysis, there is a 73.41% 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.