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Quantchabot has detected a promising Bull Put Spread trade opportunity for PROMETHEUS BIOSCIENCES INC. COMMON STOCK (RXDX) for the 17-Dec-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RXDX was recently trading at $30.51 and has an implied volatility of 94.65% for this period. Based on an analysis of the options available for RXDX expiring on 17-Dec-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $30.51-$38.75 at expiration. In this scenario, the average linear return for the trade would be 37.20%.
Big 9.08% Change: After closing the last trading session at $27.97, PROMETHEUS BIOSCIENCES INC. COMMON STOCK opened today at $28.25 and has reached a high of $30.51.
Trade approach: A movement as big as 9.08% is a significantly bullish indicator, so this trade is designed to be profitable if RXDX maintains its current direction and does not revert back to pricing on the bearish side of $30.51 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 PROMETHEUS BIOSCIENCES INC. COMMON STOCK closes at or above $30.50 on 17-Dec-2021. Based on our risk-neutral analysis, there is a 50.06% 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.