The automated Quantcha Trade Ideas Service has detected a promising
PRGO was recently trading at $84.68 and has an implied volatility of 35.63% for this period. Based on an analysis of the options available for PRGO expiring on 19-May-2017, there is a 68.27% likelihood that the underlying will close within the analyzed range of $63.60-$88.42 at expiration. In this scenario, the average linear return for the trade would be 13.65%.
Moneyness: These options are currently 0.17% out of the money and there is a 73.70% likelihood that these options will be exercised before or at expiration.
Most upside: If PERRIGO COMPANY PLC closes at or above $75.00, this trade could return up to 17.75%. Based on our analysis, there is a 49.96% likelihood of this return.
The downside: As with any covered call, the risk is substantial as it is vulnerable to a downturn in the underlying itself. There is a 16.03% chance the underlying will close at or below its breakeven price of $63.67, resulting in a net loss on the trade.
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This is an automated post generated based on a market analysis of delayed data at 2/28/2017 10:27:31 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.