The automated Quantcha Trade Ideas Service has detected a promising Covered Put trade opportunity for BIOSCRIP (BIOS) for the 21-Jul-2017 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BIOS was recently trading at $2.61 and has an implied volatility of 63.79% for this period. Based on an analysis of the options available for BIOS expiring on 21-Jul-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $2.16-$2.61 at expiration. In this scenario, the average linear return for the trade would be 10.73%.

Big -12.71% Change: After closing the last trading session at $2.99, BIOSCRIP opened today at $3.00 and has reached a low of $2.56.

Trade approach: A movement as big as -12.71% is a significantly bearish indicator, so this trade is designed to be profitable if BIOS maintains its current direction and does not revert back to pricing on the bullish side of $2.61 on 21-Jul-2017. 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 BIOSCRIP closes at or below $2.65 on 21-Jul-2017. Based on our risk-neutral analysis, there is a 52.98% 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.