Quantchabot has detected a promising Bear Call Spread trade opportunity for ILLUMINA (ILMN) for the 27-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ILMN was recently trading at $149.88 and has an implied volatility of 37.27% for this period. Based on an analysis of the options available for ILMN expiring on 27-Oct-2023, there is a 34.18% likelihood that the underlying will close within the analyzed range of $132.30-$150.95 at expiration. In this scenario, the average linear return for the trade would be 25.72%.
52 week low: ILLUMINA recently reached a new 52-week low at $149.50. ILMN had traded in the range $156.14-$248.87 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if ILMN maintains its current direction and does not revert back to pricing on the bullish side of $149.88 on 27-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 ILLUMINA closes at or below $151.00 on 27-Oct-2023. Based on our risk-neutral analysis, there is a 50.11% 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.