The automated Quantcha Trade Ideas Service has detected a promising
ICON was recently trading at $7.53 and has an implied volatility of 59.74% for this period. Based on an analysis of the options available for ICON expiring on 21-Apr-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.14-$7.56 at expiration. In this scenario, the average linear return for the trade would be 14.44%.
Big -7.27% Change: After closing the last trading session at $8.12, ICONIX BRAND GROUP opened today at $8.06 and has reached a low of $7.53.
Trade approach: A movement as big as -7.27% is a significantly bearish indicator, so this trade is designed to be profitable if ICON maintains its current direction and does not revert back to pricing on the bullish side of $7.53 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 ICONIX BRAND GROUP closes at or below $7.98 on 21-Apr-2017. Based on our risk-neutral analysis, there is a 60.35% 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 2/28/2017 1:24:11 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.