The automated Quantcha Trade Ideas Service has detected a promising
IONS was recently trading at $48.18 and has an implied volatility of 59.88% for this period. Based on an analysis of the options available for IONS expiring on 21-Jul-2017, there is a 68.27% likelihood that the underlying will close within the analyzed range of $33.15-$70.93 at expiration. In this scenario, the average linear return for the trade would be 11.73%.
Moneyness: These options are currently 34.94% out of the money and there is a 20.81% likelihood that these options will be exercised before or at expiration.
Most upside: If IONIS PHARMACEUTICALS INC. COMMON STOCK closes at or above $65.00, this trade could return up to 40.81%. Based on our analysis, there is a 22.05% 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 44.85% chance the underlying will close at or below its breakeven price of $46.16, 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 11:27:05 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.