The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for BROOKS AUTOMATION () for the 21-Jul-2017 expiration period. You can analyze the opportunity in depth over at the .
BRKS was recently trading at $22.15 and has an implied volatility of 49.63% for this period. Based on an analysis of the options available for BRKS expiring on 21-Jul-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $19.83-$22.22 at expiration. In this scenario, the average linear return for the trade would be 10.91%.
Big -7.32% Change: After closing the last trading session at $23.90, BROOKS AUTOMATION opened today at $23.69 and has reached a low of $22.15.
Trade approach: A movement as big as -7.32% is a significantly bearish indicator, so this trade is designed to be profitable if BRKS maintains its current direction and does not revert back to pricing on the bullish side of $22.15 on 21-Jul-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 BROOKS AUTOMATION closes at or below $22.29 on 21-Jul-2017. Based on our risk-neutral analysis, there is a 51.07% 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 6/29/2017 2:03:10 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.