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Quantchabot has detected a promising Covered Put trade opportunity for CUREVAC N.V. (CVAC) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CVAC was recently trading at $23.77 and has an implied volatility of 101.23% for this period. Based on an analysis of the options available for CVAC expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $20.60-$23.77 at expiration. In this scenario, the average linear return for the trade would be 13.14%.
Big -12.06% Change: After closing the last trading session at $27.03, CUREVAC N.V. opened today at $26.11 and has reached a low of $23.50.
Trade approach: A movement as big as -12.06% is a significantly bearish indicator, so this trade is designed to be profitable if CVAC maintains its current direction and does not revert back to pricing on the bullish side of $23.77 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 CUREVAC N.V. closes at or below $23.83 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.70% 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.