The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for EROS INTL PLC () for the 18-Aug-2017 expiration period. You can analyze the opportunity in depth over at the .
EROS was recently trading at $12.75 and has an implied volatility of 76.44% for this period. Based on an analysis of the options available for EROS expiring on 18-Aug-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $10.63-$12.81 at expiration. In this scenario, the average linear return for the trade would be 33.75%.
Big -7.27% Change: After closing the last trading session at $13.75, EROS INTL PLC opened today at $13.75 and has reached a low of $12.75.
Trade approach: A movement as big as -7.27% is a significantly bearish indicator, so this trade is designed to be profitable if EROS maintains its current direction and does not revert back to pricing on the bullish side of $12.75 on 18-Aug-2017. 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 EROS INTL PLC closes at or below $13.15 on 18-Aug-2017. Based on our risk-neutral analysis, there is a 55.50% 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 .
This is an automated post generated based on a market analysis of delayed data at 7/27/2017 1:28:05 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.