The automated Quantcha Trade Ideas Service has detected a promising
PULM was recently trading at $3.20 and has an implied volatility of 115.32% for this period. Based on an analysis of the options available for PULM expiring on 21-Apr-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $2.20-$3.22 at expiration. In this scenario, the average linear return for the trade would be 41.18%.
Big -7.78% Change: After closing the last trading session at $3.47, PULMATRIX INC opened today at $3.46 and has reached a low of $3.18.
Trade approach: A movement as big as -7.78% is a significantly bearish indicator, so this trade is designed to be profitable if PULM maintains its current direction and does not revert back to pricing on the bullish side of $3.20 on 21-Apr-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 PULMATRIX INC closes at or below $3.35 on 21-Apr-2017. Based on our risk-neutral analysis, there is a 54.20% 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.
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This is an automated post generated based on a market analysis of delayed data at 3/28/2017 2:22:00 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.