The automated Quantcha Trade Ideas Service has detected a promising
AUPH was recently trading at $7.00 and has an implied volatility of 95.51% for this period. Based on an analysis of the options available for AUPH expiring on 21-Apr-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $5.48-$7.02 at expiration. In this scenario, the average linear return for the trade would be 28.57%.
Big -9.56% Change: After closing the last trading session at $7.74, AURINIA PHARMACEUTICALS INC OR opened today at $7.52 and has reached a low of $6.85.
Trade approach: A movement as big as -9.56% is a significantly bearish indicator, so this trade is designed to be profitable if AUPH maintains its current direction and does not revert back to pricing on the bullish side of $7.00 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 AURINIA PHARMACEUTICALS INC OR closes at or below $7.80 on 21-Apr-2017. Based on our risk-neutral analysis, there is a 66.35% 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 3/28/2017 11:23:32 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.