Big Loser Alert: Trading today’s -9.5% move in EMERGENT BIOSOLUTIONS $EBS

Quantchabot has detected a promising Bear Call Spread trade opportunity for EMERGENT BIOSOLUTIONS (EBS) for the 16-Dec-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

EBS was recently trading at $14.25 and has an implied volatility of 159.80% for this period. Based on an analysis of the options available for EBS expiring on 16-Dec-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $8.86-$14.30 at expiration. In this scenario, the average linear return for the trade would be 14.22%.

Big -9.48% Change: After closing the last trading session at $15.74, EMERGENT BIOSOLUTIONS opened today at $15.50 and has reached a low of $14.23.

Trade approach: A movement as big as -9.48% is a significantly bearish indicator, so this trade is designed to be profitable if EBS maintains its current direction and does not revert back to pricing on the bullish side of $14.25 on 16-Dec-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 EMERGENT BIOSOLUTIONS closes at or below $14.30 on 16-Dec-2022. Based on our risk-neutral analysis, there is a 50.02% 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.