The automated Quantcha Trade Ideas Service has detected a promising
NKTR was recently trading at $13.19 and has an implied volatility of 96.07% for this period. Based on an analysis of the options available for NKTR expiring on 19-May-2017, there is a 68.27% likelihood that the underlying will close within the analyzed range of $8.50-$20.64 at expiration. In this scenario, the average linear return for the trade would be 10.79%.
Moneyness: These options are currently 28.79% out of the money and there is a 24.42% likelihood that these options will be exercised before or at expiration.
Most upside: If NEKTAR THERAPEUTICS closes at or above $17.00, this trade could return up to 34.28%. Based on our analysis, there is a 28.69% likelihood of this return.
The downside: As with any covered call, the risk is substantial as it is vulnerable to a downturn in the underlying itself. There is a 45.92% chance the underlying will close at or below its breakeven price of $12.66, resulting in a net loss on the trade.
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This is an automated post generated based on a market analysis of delayed data at 2/28/2017 1:18:20 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.