Quantchabot has detected a promising Bear Call Spread trade opportunity for NOVOCURE LIMITED ORDINARY SHARES (NVCR) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NVCR was recently trading at $20.45 and has an implied volatility of 70.13% for this period. Based on an analysis of the options available for NVCR expiring on 20-Oct-2023, there is a 34.17% likelihood that the underlying will close within the analyzed range of $15.76-$20.62 at expiration. In this scenario, the average linear return for the trade would be 81.60%.
Big -31.31% Change: After closing the last trading session at $29.77, NOVOCURE LIMITED ORDINARY SHARES opened today at $19.74 and has reached a low of $18.81.
Trade approach: A movement as big as -31.31% is a significantly bearish indicator, so this trade is designed to be profitable if NVCR maintains its current direction and does not revert back to pricing on the bullish side of $20.45 on 20-Oct-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 NOVOCURE LIMITED ORDINARY SHARES closes at or below $20.65 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.20% 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.