Quantchabot has detected a new Covered Call trade opportunity for ARCUTIS BIOTHERAPEUTICS INC. (ARQT) for the 21-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ARQT was recently trading at $15.11 and has an implied volatility of 100.17% for this period. Based on an analysis of the options available for ARQT expiring on 21-Feb-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $15.23-$23.14 at expiration. In this scenario, the average linear return for the trade would be 10.46%.
Big 7.09% Change: After closing the last trading session at $14.11, ARCUTIS BIOTHERAPEUTICS INC. opened today at $14.25 and has reached a high of $15.79.
Trade approach: A movement as big as 7.09% is a significantly bullish indicator, so this trade is designed to be profitable if ARQT maintains its current direction and does not revert back to pricing on the bearish side of $15.11 on 21-Feb-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if ARCUTIS BIOTHERAPEUTICS INC. closes at or above $13.58 on 21-Feb-2025. Based on our risk-neutral analysis, there is a 60.82% 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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