The automated Quantcha Trade Ideas Service has detected a promising
SVXY was recently trading at $124.56 and has an implied volatility of 67.10% for this period. Based on an analysis of the options available for SVXY expiring on 16-Jun-2017, there is a 68.27% likelihood that the underlying will close within the analyzed range of $86.23-$182.00 at expiration. In this scenario, the average linear return for the trade would be 10.40%.
Moneyness: These options are currently 24.44% out of the money and there is a 25.40% likelihood that these options will be exercised before or at expiration.
Most upside: If PROSHARES SHORT VIX SHORT-TERM closes at or above $155.00, this trade could return up to 31.32%. Based on our analysis, there is a 28.43% 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 43.66% chance the underlying will close at or below its breakeven price of $118.03, 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 12:22:30 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.