Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Short Risk Reversal trade opportunity for EMERGENT BIOSOLUTIONS (EBS) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. EBS was recently trading at $106.62 and has an implied volatility of 56.23% for this period. Based on an analysis of the options available for EBS expiring on 16-Apr-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $85.52-$106.64 at expiration. In this scenario, the average linear return for the trade would be 47.72%. Big -8.92% Change: After closing the last trading session at $117.06, EMERGENT BIOSOLUTIONS opened today at $106.98 and has reached a low of $102.05. Trade approach: A movement as big as -8.92% is a significantly bearish indicator, so this trade is designed to be profitable if EBS maintains its current direction and does not revert back to pricing on the bullish side of $106.62 on 16-Apr-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 EMERGENT BIOSOLUTIONS closes at or below $109.10 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 54.12% 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.