FBIO
Rating 1.5 / 5 AI signal Pass signal

Credit put spread analysis · · Weak setup

IV Rank
88
Implied volatility percentile
Trend
0.67
Long-term trend score
Safety
4/9
Quality checks passed
Drop
-5.5%
Day 4 of drop
1Y Change
18.8%
Trailing 12 months
Earnings
Clear
No event in window

AI analysis

Credit here has to justify the gap risk — and at $2. 80 with 88% IV, it simply doesn't. The chart shows a 19% run-up over two months now cracking, with no reversal signal to suggest a floor.

The math is brutal: to get a 25% credit-to-width ratio on a narrow spread, you'd need to sell a put dangerously close to the money on a stock with single-digit price and high volatility. The Safety score of 4/9 screams 'event risk.' You're not being paid enough to hold a binary lottery ticket that can gap down 30% on a dime.

Better to watch this flush play out from the sidelines.