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Quantchabot has detected a promising Covered Put trade opportunity for BERKELEY LIGHTS INC. (BLI) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BLI was recently trading at $27.33 and has an implied volatility of 130.81% for this period. Based on an analysis of the options available for BLI expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.75-$27.33 at expiration. In this scenario, the average linear return for the trade would be 45.65%.
Big -16.58% Change: After closing the last trading session at $32.76, BERKELEY LIGHTS INC. opened today at $29.57 and has reached a low of $27.16.
Trade approach: A movement as big as -16.58% is a significantly bearish indicator, so this trade is designed to be profitable if BLI maintains its current direction and does not revert back to pricing on the bullish side of $27.33 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 BERKELEY LIGHTS INC. closes at or below $28.75 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 55.34% 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.