The automated Quantcha Trade Ideas Service has detected a promising
CBIO was recently trading at $17.51 and has an implied volatility of 107.49% for this period. Based on an analysis of the options available for CBIO expiring on 21-Apr-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $17.52-$30.04 at expiration. In this scenario, the average linear return for the trade would be 113.21%.
Big 240.00% Change: After closing the last trading session at $5.15, CATALYST BIOSCIENCES INC. COMMON STOCK opened today at $8.01 and has reached a high of $18.88.
Trade approach: A movement as big as 240.00% is a significantly bullish indicator, so this trade is designed to be profitable if CBIO maintains its current direction and does not revert back to pricing on the bearish side of $17.51 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 CATALYST BIOSCIENCES INC. COMMON STOCK closes at or above $15.80 on 21-Apr-2017. Based on our risk-neutral analysis, there is a 57.62% 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 2:22:27 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.