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Quantchabot has detected a promising Long Risk Reversal trade opportunity for IMMUNITYBIO INC (IBRX) for the 17-Dec-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IBRX was recently trading at $9.94 and has an implied volatility of 134.59% for this period. Based on an analysis of the options available for IBRX expiring on 17-Dec-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $9.94-$17.49 at expiration. In this scenario, the average linear return for the trade would be 42.58%.
Big 9.23% Change: After closing the last trading session at $9.10, IMMUNITYBIO INC opened today at $9.19 and has reached a high of $9.94.
Trade approach: A movement as big as 9.23% is a significantly bullish indicator, so this trade is designed to be profitable if IBRX maintains its current direction and does not revert back to pricing on the bearish side of $9.94 on 17-Dec-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 IMMUNITYBIO INC closes at or above $9.80 on 17-Dec-2021. Based on our risk-neutral analysis, there is a 51.01% 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.