The automated Quantcha Trade Ideas Service has detected a promising
OMER was recently trading at $14.51 and has an implied volatility of 48.12% for this period. Based on an analysis of the options available for OMER expiring on 21-Apr-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $14.53-$17.00 at expiration. In this scenario, the average linear return for the trade would be 39.63%.
Big 14.52% Change: After closing the last trading session at $12.67, OMEROS opened today at $12.51 and has reached a high of $14.54.
Trade approach: A movement as big as 14.52% is a significantly bullish indicator, so this trade is designed to be profitable if OMER maintains its current direction and does not revert back to pricing on the bearish side of $14.51 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 bullish strategy, the trade would be profitable if OMEROS closes at or above $14.40 on 21-Apr-2017. Based on our risk-neutral analysis, there is a 52.22% 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 3/28/2017 11:23:51 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.