Big Loser Alert: Trading today’s -7.1% move in ADC THERAPEUTICS SA $ADCT

Quantchabot has detected a new Covered Put trade opportunity for ADC THERAPEUTICS SA (ADCT) for the 19-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ADCT was recently trading at $3.38 and has an implied volatility of 141.66% for this period. Based on an analysis of the options available for ADCT expiring on 19-Jul-2024, there is a 34.19% likelihood that the underlying will close within the analyzed range of $2.14-$3.40 at expiration. In this scenario, the average linear return for the trade would be 31.00%.

Big -7.14% Change: After closing the last trading session at $3.64, ADC THERAPEUTICS SA opened today at $3.63 and has reached a low of $3.35.

Trade approach: A movement as big as -7.14% is a significantly bearish indicator, so this trade is designed to be profitable if ADCT maintains its current direction and does not revert back to pricing on the bullish side of $3.38 on 19-Jul-2024. 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 ADC THERAPEUTICS SA closes at or below $3.47 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 51.77% 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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