Quantchabot has detected a promising Bear Call Spread trade opportunity for CRISPR THERAPEUTICS AG COMMON SHARES (CRSP) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CRSP was recently trading at $57.94 and has an implied volatility of 80.00% for this period. Based on an analysis of the options available for CRSP expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $44.85-$58.01 at expiration. In this scenario, the average linear return for the trade would be 31.58%.
Big -10.41% Change: After closing the last trading session at $64.67, CRISPR THERAPEUTICS AG COMMON SHARES opened today at $63.01 and has reached a low of $56.34.
Trade approach: A movement as big as -10.41% is a significantly bearish indicator, so this trade is designed to be profitable if CRSP maintains its current direction and does not revert back to pricing on the bullish side of $57.94 on 29-Jul-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 CRISPR THERAPEUTICS AG COMMON SHARES closes at or below $58.20 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 50.52% 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.