Big Loser Alert: Trading today’s -7.4% move in IGM BIOSCIENCES INC. COMMON STOCK $IGMS

Quantchabot has detected a new Covered Put trade opportunity for IGM BIOSCIENCES INC. COMMON STOCK (IGMS) for the 19-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

IGMS was recently trading at $7.15 and has an implied volatility of 123.98% for this period. Based on an analysis of the options available for IGMS expiring on 19-Jul-2024, there is a 34.19% likelihood that the underlying will close within the analyzed range of $4.81-$7.19 at expiration. In this scenario, the average linear return for the trade would be 10.48%.

Big -7.38% Change: After closing the last trading session at $7.72, IGM BIOSCIENCES INC. COMMON STOCK opened today at $7.71 and has reached a low of $7.15.

Trade approach: A movement as big as -7.38% is a significantly bearish indicator, so this trade is designed to be profitable if IGMS maintains its current direction and does not revert back to pricing on the bullish side of $7.15 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 IGM BIOSCIENCES INC. COMMON STOCK closes at or below $7.90 on 19-Jul-2024. Based on our risk-neutral analysis, there is a 59.22% 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.


Posted

in

by

Tags:

Comments

Leave a Reply