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Quantchabot has detected a promising Bear Call Spread 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 $36.94 and has an implied volatility of 88.86% 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 $32.06-$36.94 at expiration. In this scenario, the average linear return for the trade would be 27.83%.
Big -12.30% Change: After closing the last trading session at $42.12, PROTHENA CORPORATION PLC ORDIN opened today at $39.37 and has reached a low of $35.04.
Trade approach: A movement as big as -12.30% 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 $36.94 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 $37.50 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 54.22% 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.