Quantchabot has detected a promising Long Put trade opportunity for DURECT (DRRX) for the 20-Oct-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DRRX was recently trading at $2.55 and has an implied volatility of 7466.08% for this period. Based on an analysis of the options available for DRRX expiring on 20-Oct-2023, there is a 37.31% likelihood that the underlying will close within the analyzed range of $0.09-$2.55 at expiration. In this scenario, the average linear return for the trade would be 71.83%.
Big -12.76% Change: After closing the last trading session at $2.92, DURECT opened today at $2.92 and has reached a low of $2.52.
Trade approach: A movement as big as -12.76% is a significantly bearish indicator, so this trade is designed to be profitable if DRRX maintains its current direction and does not revert back to pricing on the bullish side of $2.55 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 DURECT closes at or below $2.55 on 20-Oct-2023. Based on our risk-neutral analysis, there is a 50.01% 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.