Quantchabot has detected a promising Covered Put trade opportunity for PROTHENA CORPORATION PLC ORDIN (PRTA) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PRTA was recently trading at $47.90 and has an implied volatility of 104.67% for this period. Based on an analysis of the options available for PRTA expiring on 20-Oct-2023, there is a 34.70% likelihood that the underlying will close within the analyzed range of $43.16-$47.93 at expiration. In this scenario, the average linear return for the trade would be 10.91%.
Big -8.45% Change: After closing the last trading session at $52.32, PROTHENA CORPORATION PLC ORDIN opened today at $52.27 and has reached a low of $46.78.
Trade approach: A movement as big as -8.45% is a significantly bearish indicator, so this trade is designed to be profitable if PRTA maintains its current direction and does not revert back to pricing on the bullish side of $47.90 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 PROTHENA CORPORATION PLC ORDIN closes at or below $48.52 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 54.79% 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.