The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for TEVA PHARMACEUTICAL () for the 17-Nov-2017 expiration period. You can analyze the opportunity in depth over at the .
TEVA was recently trading at $18.90 and has an implied volatility of 47.50% for this period. Based on an analysis of the options available for TEVA expiring on 17-Nov-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $14.75-$19.04 at expiration. In this scenario, the average linear return for the trade would be 51.46%.
Big -8.24% Change: After closing the last trading session at $20.60, TEVA PHARMACEUTICAL opened today at $19.97 and has reached a low of $18.82.
Trade approach: A movement as big as -8.24% is a significantly bearish indicator, so this trade is designed to be profitable if TEVA maintains its current direction and does not revert back to pricing on the bullish side of $18.90 on 17-Nov-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 TEVA PHARMACEUTICAL closes at or below $19.06 on 17-Nov-2017. Based on our risk-neutral analysis, there is a 50.19% 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 8/7/2017 12:58:01 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.