Quantchabot has detected a promising Bear Call Spread trade opportunity for EMERGENT BIOSOLUTIONS (EBS) for the 16-Jun-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EBS was recently trading at $8.53 and has an implied volatility of 84.61% for this period. Based on an analysis of the options available for EBS expiring on 16-Jun-2023, there is a 34.20% likelihood that the underlying will close within the analyzed range of $6.68-$8.57 at expiration. In this scenario, the average linear return for the trade would be 23.01%.
Big -8.18% Change: After closing the last trading session at $9.29, EMERGENT BIOSOLUTIONS opened today at $9.09 and has reached a low of $8.47.
Trade approach: A movement as big as -8.18% 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 $8.53 on 16-Jun-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 EMERGENT BIOSOLUTIONS closes at or below $8.70 on 16-Jun-2023. Based on our risk-neutral analysis, there is a 52.36% 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.
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