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Quantchabot has detected a promising Short Risk Reversal trade opportunity for CEL-SCI (CVM) for the 21-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CVM was recently trading at $19.00 and has an implied volatility of 166.53% for this period. Based on an analysis of the options available for CVM expiring on 21-May-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $15.83-$19.00 at expiration. In this scenario, the average linear return for the trade would be 27.59%.
Big -14.91% Change: After closing the last trading session at $22.33, CEL-SCI opened today at $20.14 and has reached a low of $18.95.
Trade approach: A movement as big as -14.91% is a significantly bearish indicator, so this trade is designed to be profitable if CVM maintains its current direction and does not revert back to pricing on the bullish side of $19.00 on 21-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 CEL-SCI closes at or below $20.80 on 21-May-2021. Based on our risk-neutral analysis, there is a 68.99% 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.