Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for TARO PHARMACEUTICAL (TARO) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. TARO was recently trading at $55.19 and has an implied volatility of 52.22% for this period. Based on an analysis of the options available for TARO expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $48.11-$55.20 at expiration. In this scenario, the average linear return for the trade would be 11.46%. 52 week low: TARO PHARMACEUTICAL recently reached a new 52-week low at $55.19. TARO had traded in the range $56.07-$99.69 over the past year. Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if TARO maintains its current direction and does not revert back to pricing on the bullish side of $55.19 on 16-Oct-2020. 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 TARO PHARMACEUTICAL closes at or below $55.23 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 50.18% 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 Quantcha Options Search Engine.