Big Gainer Alert: Trading today’s 19.0% move in INSMED $INSM

Quantchabot has detected a promising Covered Call trade opportunity for INSMED (INSM) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

INSM was recently trading at $26.95 and has an implied volatility of 53.13% for this period. Based on an analysis of the options available for INSM expiring on 20-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $27.14-$32.75 at expiration. In this scenario, the average linear return for the trade would be 10.31%.

Big 19.04% Change: After closing the last trading session at $22.64, INSMED opened today at $24.05 and has reached a high of $27.15.

Trade approach: A movement as big as 19.04% is a significantly bullish indicator, so this trade is designed to be profitable if INSM maintains its current direction and does not revert back to pricing on the bearish side of $26.95 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 bullish strategy, the trade would be profitable if INSMED closes at or above $26.39 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 55.94% 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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