Covered Call Alert: LIVONGO HEALTH INC $LVGO returning up to 33.84% through 15-May-2020
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Quantchabot has detected a promising
LVGO was recently trading at $29.90 and has an implied volatility of 81.41% for this period. Based on an analysis of the options available for LVGO expiring on 15-May-2020, there is a 68.27% likelihood that the underlying will close within the analyzed range of $17.89-$50.58 at expiration. In this scenario, the average linear return for the trade would be 10.88%.
Moneyness: These options are currently 17.14% out of the money and there is a 37.92% likelihood that these options will be exercised before or at expiration.
Most upside: If LIVONGO HEALTH INC closes at or above $35.00, this trade could return up to 33.84%. Based on our analysis, there is a 38.53% 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 39.38% chance the underlying will close at or below its breakeven price of $26.15, resulting in a net loss on the trade.
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