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 $10.70 and has an implied volatility of 74.03% for this period. Based on an analysis of the options available for NEO expiring on 17-Feb-2023, there is a 34.24% likelihood that the underlying will close within the analyzed range of $8.89-$10.73 at expiration. In this scenario, the average linear return for the trade would be 13.26%.
Big -7.36% Change: After closing the last trading session at $11.55, NEOGENOMICS opened today at $11.33 and has reached a low of $10.68.
Trade approach: A movement as big as -7.36% 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 $10.70 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 $10.93 on 17-Feb-2023. Based on our risk-neutral analysis, there is a 53.85% 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.