Quantchabot has detected a promising Bear Call Spread trade opportunity for CASSAVA SCIENCES INC (SAVA) for the 24-Feb-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SAVA was recently trading at $26.59 and has an implied volatility of 113.01% for this period. Based on an analysis of the options available for SAVA expiring on 24-Feb-2023, there is a 34.22% likelihood that the underlying will close within the analyzed range of $19.24-$26.70 at expiration. In this scenario, the average linear return for the trade would be 23.89%.
Big -9.68% Change: After closing the last trading session at $29.44, CASSAVA SCIENCES INC opened today at $28.25 and has reached a low of $25.72.
Trade approach: A movement as big as -9.68% is a significantly bearish indicator, so this trade is designed to be profitable if SAVA maintains its current direction and does not revert back to pricing on the bullish side of $26.59 on 24-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 CASSAVA SCIENCES INC closes at or below $26.76 on 24-Feb-2023. Based on our risk-neutral analysis, there is a 50.29% 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.