Big Gainer Alert: Trading today’s 8.0% move in INVITAE CORP $NVTA

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Quantchabot has detected a promising Long Risk Reversal trade opportunity for INVITAE CORP (NVTA) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NVTA was recently trading at $22.18 and has an implied volatility of 64.00% for this period. Based on an analysis of the options available for NVTA expiring on 21-Jan-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $22.18-$29.49 at expiration. In this scenario, the average linear return for the trade would be 78.67%.

Big 8.04% Change: After closing the last trading session at $20.53, INVITAE CORP opened today at $20.63 and has reached a high of $22.19.

Trade approach: A movement as big as 8.04% is a significantly bullish indicator, so this trade is designed to be profitable if NVTA maintains its current direction and does not revert back to pricing on the bearish side of $22.18 on 21-Jan-2022. 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 INVITAE CORP closes at or above $21.55 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 54.05% 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.