The automated Quantcha Trade Ideas Service has detected a promising
PCRX was recently trading at $43.90 and has an implied volatility of 74.36% for this period. Based on an analysis of the options available for PCRX expiring on 18-Aug-2017, there is a 68.27% likelihood that the underlying will close within the analyzed range of $26.86-$72.71 at expiration. In this scenario, the average linear return for the trade would be 15.30%.
Moneyness: These options are currently 36.75% out of the money and there is a 25.53% likelihood that these options will be exercised before or at expiration.
Most upside: If PACIRA PHARMACEUTICALS closes at or above $60.00, this trade could return up to 44.06%. Based on our analysis, there is a 26.96% 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 45.26% chance the underlying will close at or below its breakeven price of $41.65, 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 11:25:08 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.