Big Loser Alert: Trading today’s -9.4% move in ALLOGENE THERAPEUTICS INC $ALLO

Quantchabot has detected a promising Covered Put trade opportunity for ALLOGENE THERAPEUTICS INC (ALLO) for the 21-Oct-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ALLO was recently trading at $12.10 and has an implied volatility of 99.68% for this period. Based on an analysis of the options available for ALLO expiring on 21-Oct-2022, there is a 34.20% likelihood that the underlying will close within the analyzed range of $9.08-$12.13 at expiration. In this scenario, the average linear return for the trade would be 11.66%.

Big -9.36% Change: After closing the last trading session at $13.35, ALLOGENE THERAPEUTICS INC opened today at $13.41 and has reached a low of $12.09.

Trade approach: A movement as big as -9.36% is a significantly bearish indicator, so this trade is designed to be profitable if ALLO maintains its current direction and does not revert back to pricing on the bullish side of $12.10 on 21-Oct-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 ALLOGENE THERAPEUTICS INC closes at or below $13.09 on 21-Oct-2022. Based on our risk-neutral analysis, there is a 60.46% 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.