Quantchabot has detected a new Bear Call Spread trade opportunity for SUMMIT THERAPEUTICS PLC AMERIC (SMMT) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SMMT was recently trading at $34.10 and has an implied volatility of 105.22% for this period. Based on an analysis of the options available for SMMT expiring on 25-Apr-2025, there is a 37.47% likelihood that the underlying will close within the analyzed range of $32.57-$34.10 at expiration. In this scenario, the average linear return for the trade would be 10.92%.
Big -7.08% Change: After closing the last trading session at $36.70, SUMMIT THERAPEUTICS PLC AMERIC opened today at $34.48 and has reached a low of $33.53.
Trade approach: A movement as big as -7.08% is a significantly bearish indicator, so this trade is designed to be profitable if SMMT maintains its current direction and does not revert back to pricing on the bullish side of $34.10 on 25-Apr-2025. 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 SUMMIT THERAPEUTICS PLC AMERIC closes at or below $34.20 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 52.85% 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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