Quantchabot has detected a promising Bear Call Spread trade opportunity for AMBRX BIOPHARMA INC. ADS (AMAM) for the 17-Nov-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMAM was recently trading at $10.54 and has an implied volatility of 217.39% for this period. Based on an analysis of the options available for AMAM expiring on 17-Nov-2023, there is a 34.20% likelihood that the underlying will close within the analyzed range of $5.58-$10.59 at expiration. In this scenario, the average linear return for the trade would be 29.01%.
Big -7.79% Change: After closing the last trading session at $11.43, AMBRX BIOPHARMA INC. ADS opened today at $10.01 and has reached a low of $10.01.
Trade approach: A movement as big as -7.79% is a significantly bearish indicator, so this trade is designed to be profitable if AMAM maintains its current direction and does not revert back to pricing on the bullish side of $10.54 on 17-Nov-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 AMBRX BIOPHARMA INC. ADS closes at or below $11.15 on 17-Nov-2023. Based on our risk-neutral analysis, there is a 53.20% 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.