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Quantchabot has detected a promising Bear Call Spread trade opportunity for BIOGEN INC. COMMON STOCK (BIIB) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BIIB was recently trading at $218.93 and has an implied volatility of 30.77% for this period. Based on an analysis of the options available for BIIB expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $208.43-$218.94 at expiration. In this scenario, the average linear return for the trade would be 42.05%.
52 week low: BIOGEN INC. COMMON STOCK recently reached a new 52-week low at $217.10. BIIB had traded in the range $221.72-$468.55 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if BIIB maintains its current direction and does not revert back to pricing on the bullish side of $218.93 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 BIOGEN INC. COMMON STOCK closes at or below $219.30 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 51.35% 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.