Big Gainer Alert: Trading today’s 8.6% move in EMERGENT BIOSOLUTIONS $EBS

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bull Put Spread trade opportunity for EMERGENT BIOSOLUTIONS (EBS) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EBS was recently trading at $43.30 and has an implied volatility of 65.39% for this period. Based on an analysis of the options available for EBS expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $43.30-$56.37 at expiration. In this scenario, the average linear return for the trade would be 61.46%.

Big 8.59% Change: After closing the last trading session at $39.87, EMERGENT BIOSOLUTIONS opened today at $42.22 and has reached a high of $43.85.

Trade approach: A movement as big as 8.59% is a significantly bullish indicator, so this trade is designed to be profitable if EBS maintains its current direction and does not revert back to pricing on the bearish side of $43.30 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 EMERGENT BIOSOLUTIONS closes at or above $43.00 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 51.06% 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.