Big Loser Alert: Trading today’s -8.1% move in NOVAVAX $NVAX

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Quantchabot has detected a promising Covered Put trade opportunity for NOVAVAX (NVAX) for the 25-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NVAX was recently trading at $119.68 and has an implied volatility of 103.86% for this period. Based on an analysis of the options available for NVAX expiring on 25-Feb-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $83.69-$119.69 at expiration. In this scenario, the average linear return for the trade would be 458.02%.

Big -8.06% Change: After closing the last trading session at $130.17, NOVAVAX opened today at $126.70 and has reached a low of $117.16.

Trade approach: A movement as big as -8.06% is a significantly bearish indicator, so this trade is designed to be profitable if NVAX maintains its current direction and does not revert back to pricing on the bullish side of $119.68 on 25-Feb-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 NOVAVAX closes at or below $178.71 on 25-Feb-2022. Based on our risk-neutral analysis, there is a 86.88% 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.