Big Loser Alert: Trading today’s -7.6% move in PROTHENA CORPORATION PLC ORDIN $PRTA

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Covered Put trade opportunity for PROTHENA CORPORATION PLC ORDIN (PRTA) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PRTA was recently trading at $54.52 and has an implied volatility of 83.83% for this period. Based on an analysis of the options available for PRTA expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $38.89-$54.53 at expiration. In this scenario, the average linear return for the trade would be 33.46%.

Big -7.61% Change: After closing the last trading session at $59.01, PROTHENA CORPORATION PLC ORDIN opened today at $58.84 and has reached a low of $53.00.

Trade approach: A movement as big as -7.61% is a significantly bearish indicator, so this trade is designed to be profitable if PRTA maintains its current direction and does not revert back to pricing on the bullish side of $54.52 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 bearish strategy, the trade would be profitable if PROTHENA CORPORATION PLC ORDIN closes at or below $58.45 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 58.14% 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.