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Quantchabot has detected a promising Long Risk Reversal trade opportunity for THERAVANCE BIOPHARMA INC (TBPH) for the 16-Dec-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TBPH was recently trading at $9.32 and has an implied volatility of 91.86% for this period. Based on an analysis of the options available for TBPH expiring on 16-Dec-2022, there is a 34.63% likelihood that the underlying will close within the analyzed range of $9.32-$19.27 at expiration. In this scenario, the average linear return for the trade would be 114.26%.
Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, THERAVANCE BIOPHARMA INC 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 TBPH 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 THERAVANCE BIOPHARMA INC closed at or above $8.95 on 16-Dec-2022. Based on our analysis, there is a 52.73% 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.