Quantchabot has detected a new Covered Put trade opportunity for IRONWOOD PHARMACEUTICALS (IRWD) for the 16-Jan-2026 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
IRWD was recently trading at $3.41 and has an implied volatility of 154.70% for this period. Based on an analysis of the options available for IRWD expiring on 16-Jan-2026, there is a 34.20% likelihood that the underlying will close within the analyzed range of $2.02-$3.42 at expiration. In this scenario, the average linear return for the trade would be 28.29%.
Big -8.62% Change: After closing the last trading session at $3.73, IRONWOOD PHARMACEUTICALS opened today at $3.73 and has reached a low of $3.40.
Trade approach: A movement as big as -8.62% is a significantly bearish indicator, so this trade is designed to be profitable if IRWD maintains its current direction and does not revert back to pricing on the bullish side of $3.41 on 16-Jan-2026. 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 IRONWOOD PHARMACEUTICALS closes at or below $3.45 on 16-Jan-2026. Based on our risk-neutral analysis, there is a 50.57% 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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