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Quantchabot has detected a promising Bull Put Spread trade opportunity for NEUROCRINE BIOSCIENCES (NBIX) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NBIX was recently trading at $81.24 and has an implied volatility of 43.00% for this period. Based on an analysis of the options available for NBIX expiring on 17-Jun-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $81.28-$93.50 at expiration. In this scenario, the average linear return for the trade would be 14.50%.
Big 7.19% Change: After closing the last trading session at $75.79, NEUROCRINE BIOSCIENCES opened today at $78.12 and has reached a high of $85.61.
Trade approach: A movement as big as 7.19% is a significantly bullish indicator, so this trade is designed to be profitable if NBIX maintains its current direction and does not revert back to pricing on the bearish side of $81.24 on 17-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 bullish strategy, the trade would be profitable if NEUROCRINE BIOSCIENCES closes at or above $78.10 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 61.26% 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.