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Quantchabot has detected a promising Long Risk Reversal trade opportunity for IMMUNITYBIO INC (IBRX) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IBRX was recently trading at $17.22 and has an implied volatility of 92.94% for this period. Based on an analysis of the options available for IBRX expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $17.22-$22.71 at expiration. In this scenario, the average linear return for the trade would be 69.21%.
Big 13.81% Change: After closing the last trading session at $15.13, IMMUNITYBIO INC opened today at $15.83 and has reached a high of $17.31.
Trade approach: A movement as big as 13.81% is a significantly bullish indicator, so this trade is designed to be profitable if IBRX maintains its current direction and does not revert back to pricing on the bearish side of $17.22 on 18-Jun-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 IMMUNITYBIO INC closes at or above $16.55 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 55.71% 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.