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Quantchabot has detected a promising Covered Put trade opportunity for LYELL IMMUNOPHARMA INC. COMMON STOCK (LYEL) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LYEL was recently trading at $14.42 and has an implied volatility of 106.21% for this period. Based on an analysis of the options available for LYEL expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $10.56-$14.42 at expiration. In this scenario, the average linear return for the trade would be 15.30%.
Big -10.16% Change: After closing the last trading session at $16.05, LYELL IMMUNOPHARMA INC. COMMON STOCK opened today at $15.88 and has reached a low of $14.42.
Trade approach: A movement as big as -10.16% is a significantly bearish indicator, so this trade is designed to be profitable if LYEL maintains its current direction and does not revert back to pricing on the bullish side of $14.42 on 15-Oct-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 LYELL IMMUNOPHARMA INC. COMMON STOCK closes at or below $15.88 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 62.16% 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.