The automated Quantcha Trade Ideas Service has detected a promising
FLXN was recently trading at $26.96 and has an implied volatility of 101.74% for this period. Based on an analysis of the options available for FLXN expiring on 21-Apr-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $21.21-$27.06 at expiration. In this scenario, the average linear return for the trade would be 49.14%.
Big -7.86% Change: After closing the last trading session at $29.26, FLEXION THERAPEUTICS INC. COM opened today at $27.99 and has reached a low of $26.92.
Trade approach: A movement as big as -7.86% is a significantly bearish indicator, so this trade is designed to be profitable if FLXN maintains its current direction and does not revert back to pricing on the bullish side of $26.96 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 FLEXION THERAPEUTICS INC. COM closes at or below $27.15 on 21-Apr-2017. Based on our risk-neutral analysis, there is a 50.52% 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 3:20:33 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.