Re: Farmas USA
http://ideas.quantcha.com/2015/06/05/covered-call-alert-novavax-nvax-returning-up-to-52-67-through-16-oct-2015/
COVERED CALL ALERT: NOVAVAX $NVAX RETURNING UP TO 52.67% THROUGH 16-OCT-2015
JUNE 5, 2015 AUTOMATED IDEAS
The automated Quantcha Trade Ideas Service has detected a promising Covered Call trade opportunity for NOVAVAX (NVAX) for the 16-Oct-2015 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NVAX was recently trading at $8.56 and has an implied volatility of 96.19% for this period. Based on an analysis of the options available for NVAX expiring on 16-Oct-2015, there is a 68.27% likelihood that the underlying will close within the analyzed range of $4.89-$14.99 at expiration. In this scenario, the average linear return for the trade would be 20.83%.
Moneyness: These options are currently 40.27% out of the money and there is a 27.21% likelihood that these options will be exercised before or at expiration.
Most upside: If NOVAVAX closes at or above $12.00, this trade could return up to 52.67%. Based on our analysis, there is a 27.32% 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 43.92% chance the underlying will close at or below its breakeven price of $7.86, resulting in a net loss on the trade.
NVAX
