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Quantchabot has detected a promising Bull Put Spread trade opportunity for REVANCE THERAPEUTICS INC. COM (RVNC) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RVNC was recently trading at $23.13 and has an implied volatility of 222.28% for this period. Based on an analysis of the options available for RVNC expiring on 15-Oct-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $23.13-$27.66 at expiration. In this scenario, the average linear return for the trade would be 55.83%.
Big 13.11% Change: After closing the last trading session at $20.45, REVANCE THERAPEUTICS INC. COM opened today at $22.77 and has reached a high of $23.94.
Trade approach: A movement as big as 13.11% is a significantly bullish indicator, so this trade is designed to be profitable if RVNC maintains its current direction and does not revert back to pricing on the bearish side of $23.13 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 bullish strategy, the trade would be profitable if REVANCE THERAPEUTICS INC. COM closes at or above $22.90 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 52.23% 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.