Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for ILLUMINA (ILMN) for the 24-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ILMN was recently trading at $246.81 and has an implied volatility of 52.90% for this period. Based on an analysis of the options available for ILMN expiring on 24-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $203.17-$246.97 at expiration. In this scenario, the average linear return for the trade would be 19.52%.
Big -15.40% Change: After closing the last trading session at $291.72, ILLUMINA opened today at $283.00 and has reached a low of $240.03.
Trade approach: A movement as big as -15.40% is a significantly bearish indicator, so this trade is designed to be profitable if ILMN maintains its current direction and does not revert back to pricing on the bullish side of $246.81 on 24-Jun-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 ILLUMINA closes at or below $254.90 on 24-Jun-2022. Based on our risk-neutral analysis, there is a 56.44% 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.