Big Loser Alert: Trading today’s -60.7% move in ACELYRIN INC. $SLRN

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

SLRN was recently trading at $10.96 and has an implied volatility of 82.61% for this period. Based on an analysis of the options available for SLRN expiring on 20-Oct-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $8.43-$11.03 at expiration. In this scenario, the average linear return for the trade would be 20.88%.

Big -60.70% Change: After closing the last trading session at $27.90, ACELYRIN INC. opened today at $11.16 and has reached a low of $10.32.

Trade approach: A movement as big as -60.70% is a significantly bearish indicator, so this trade is designed to be profitable if SLRN maintains its current direction and does not revert back to pricing on the bullish side of $10.96 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 ACELYRIN INC. closes at or below $15.25 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 88.62% 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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