Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for INSMED (INSM) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. INSM was recently trading at $36.58 and has an implied volatility of 71.62% for this period. Based on an analysis of the options available for INSM expiring on 19-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $27.03-$36.59 at expiration. In this scenario, the average linear return for the trade would be 52.73%. Big -9.77% Change: After closing the last trading session at $40.54, INSMED opened today at $40.83 and has reached a low of $36.53. Trade approach: A movement as big as -9.77% is a significantly bearish indicator, so this trade is designed to be profitable if INSM maintains its current direction and does not revert back to pricing on the bullish side of $36.58 on 19-Feb-2021. 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 INSMED closes at or below $37.80 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 54.28% 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.