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Quantchabot has detected a promising Covered Put trade opportunity for BROOKLYN IMMUNOTHERAPEUTICS INC (BTX) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BTX was recently trading at $19.26 and has an implied volatility of 202.47% for this period. Based on an analysis of the options available for BTX expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $10.55-$19.26 at expiration. In this scenario, the average linear return for the trade would be 241.23%.
Big -10.83% Change: After closing the last trading session at $21.60, BROOKLYN IMMUNOTHERAPEUTICS INC opened today at $21.74 and has reached a low of $19.01.
Trade approach: A movement as big as -10.83% is a significantly bearish indicator, so this trade is designed to be profitable if BTX maintains its current direction and does not revert back to pricing on the bullish side of $19.26 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 bearish strategy, the trade would be profitable if BROOKLYN IMMUNOTHERAPEUTICS INC closes at or below $27.75 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 72.78% 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.