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Quantchabot has detected a promising Covered Put trade opportunity for C4 THERAPEUTICS INC. COMMON STOCK (CCCC) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CCCC was recently trading at $34.35 and has an implied volatility of 78.63% for this period. Based on an analysis of the options available for CCCC expiring on 16-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $25.09-$34.36 at expiration. In this scenario, the average linear return for the trade would be 20.93%.
Big -8.74% Change: After closing the last trading session at $37.64, C4 THERAPEUTICS INC. COMMON STOCK opened today at $36.89 and has reached a low of $34.35.
Trade approach: A movement as big as -8.74% is a significantly bearish indicator, so this trade is designed to be profitable if CCCC maintains its current direction and does not revert back to pricing on the bullish side of $34.35 on 16-Jul-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 C4 THERAPEUTICS INC. COMMON STOCK closes at or below $37.86 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 62.13% 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.