The automated Quantcha Trade Ideas Service has detected a promising
SLAB was recently trading at $67.30 and has an implied volatility of 35.74% for this period. Based on an analysis of the options available for SLAB expiring on 21-Apr-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $60.27-$67.50 at expiration. In this scenario, the average linear return for the trade would be 30.17%.
Big -7.04% Change: After closing the last trading session at $72.40, SILICON LABORATORIES opened today at $70.15 and has reached a low of $67.25.
Trade approach: A movement as big as -7.04% is a significantly bearish indicator, so this trade is designed to be profitable if SLAB maintains its current direction and does not revert back to pricing on the bullish side of $67.30 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 SILICON LABORATORIES closes at or below $67.65 on 21-Apr-2017. Based on our risk-neutral analysis, there is a 50.79% 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 2/28/2017 1:22:42 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.