Quantcha now offering unlimited commission-free options trading. Quantchabot has detected a promising Covered Put trade opportunity for IRONWOOD PHARMACEUTICALS (IRWD) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine. IRWD was recently trading at $8.76 and has an implied volatility of 113.46% for this period. Based on an analysis of the options available for IRWD expiring on 16-Oct-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.84-$8.76 at expiration. In this scenario, the average linear return for the trade would be 19.94%. Big -8.13% Change: After closing the last trading session at $9.53, IRONWOOD PHARMACEUTICALS opened today at $8.86 and has reached a low of $8.63. Trade approach: A movement as big as -8.13% is a significantly bearish indicator, so this trade is designed to be profitable if IRWD maintains its current direction and does not revert back to pricing on the bullish side of $8.76 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 IRONWOOD PHARMACEUTICALS closes at or below $8.80 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 50.82% 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.