Big Gainer Alert: Trading today’s 8.6% move in F5 NETWORKS
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Quantchabot has detected a promising trade opportunity for F5 NETWORKS () for the 22-Jan-2021 expiration period. You can analyze the opportunity in depth over at the .
FFIV was recently trading at $195.61 and has an implied volatility of 29.20% for this period. Based on an analysis of the options available for FFIV expiring on 22-Jan-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $195.62-$207.28 at expiration. In this scenario, the average linear return for the trade would be 29.97%.
Big 8.61% Change: After closing the last trading session at $180.10, F5 NETWORKS opened today at $193.72 and has reached a high of $200.57.
Trade approach: A movement as big as 8.61% is a significantly bullish indicator, so this trade is designed to be profitable if FFIV maintains its current direction and does not revert back to pricing on the bearish side of $195.61 on 22-Jan-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if F5 NETWORKS closes at or above $195.20 on 22-Jan-2021. Based on our risk-neutral analysis, there is a 51.48% 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 .