The automated Quantcha Trade Ideas Service has detected a promising
AGIO was recently trading at $48.96 and has an implied volatility of 65.59% for this period. Based on an analysis of the options available for AGIO expiring on 18-Aug-2017, there is a 68.27% likelihood that the underlying will close within the analyzed range of $32.08-$75.72 at expiration. In this scenario, the average linear return for the trade would be 11.90%.
Moneyness: These options are currently 22.61% out of the money and there is a 32.82% likelihood that these options will be exercised before or at expiration.
Most upside: If AGIOS PHARMACEUTICALS INC closes at or above $60.00, this trade could return up to 31.46%. Based on our analysis, there is a 32.35% 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 42.89% chance the underlying will close at or below its breakeven price of $45.64, 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 11:26:35 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.