Big Loser Alert: Trading today’s -7.1% move in NEOGENOMICS $NEO

Quantchabot has detected a promising Covered Put trade opportunity for NEOGENOMICS (NEO) for the 17-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NEO was recently trading at $10.73 and has an implied volatility of 74.30% for this period. Based on an analysis of the options available for NEO expiring on 17-Feb-2023, there is a 34.25% likelihood that the underlying will close within the analyzed range of $8.91-$10.76 at expiration. In this scenario, the average linear return for the trade would be 15.68%.

Big -7.10% Change: After closing the last trading session at $11.55, NEOGENOMICS opened today at $11.33 and has reached a low of $10.69.

Trade approach: A movement as big as -7.10% is a significantly bearish indicator, so this trade is designed to be profitable if NEO maintains its current direction and does not revert back to pricing on the bullish side of $10.73 on 17-Feb-2023. 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 NEOGENOMICS closes at or below $10.97 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 54.02% 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.