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Quantchabot has detected a promising Covered Put trade opportunity for CASSAVA SCIENCES INC (SAVA) for the 29-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SAVA was recently trading at $43.26 and has an implied volatility of 151.97% for this period. Based on an analysis of the options available for SAVA expiring on 29-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $25.32-$43.26 at expiration. In this scenario, the average linear return for the trade would be 88.80%.
Big -8.19% Change: After closing the last trading session at $47.12, CASSAVA SCIENCES INC opened today at $46.96 and has reached a low of $42.20.
Trade approach: A movement as big as -8.19% is a significantly bearish indicator, so this trade is designed to be profitable if SAVA maintains its current direction and does not revert back to pricing on the bullish side of $43.26 on 29-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 CASSAVA SCIENCES INC closes at or below $62.30 on 29-Oct-2021. Based on our risk-neutral analysis, there is a 75.20% 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.