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Quantchabot has detected a promising Covered Call trade opportunity for FATE THERAPEUTICS INC. COMMON (FATE) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
FATE was recently trading at $42.20 and has an implied volatility of 76.47% for this period. Based on an analysis of the options available for FATE expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $42.20-$53.65 at expiration. In this scenario, the average linear return for the trade would be 14.52%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, FATE THERAPEUTICS INC. COMMON was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.
Trade approach: The recent sentiment change in FATE on StockTwits appears to be moderately positive, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bullish strategy could prove effective if the sentiment ultimately turns out to drive trading.
Upside potential: Using this bullish strategy, the trade would be profitable if FATE THERAPEUTICS INC. COMMON closed at or above $40.85 on 18-Feb-2022. Based on our analysis, there is a 55.40% 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.