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Quantchabot has detected a promising Bear Call Spread trade opportunity for INSPERITY (NSP) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NSP was recently trading at $67.02 and has an implied volatility of 37.61% for this period. Based on an analysis of the options available for NSP expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $57.20-$67.22 at expiration. In this scenario, the average linear return for the trade would be 31.65%.
Big -24.76% Change: After closing the last trading session at $89.08, INSPERITY opened today at $70.00 and has reached a low of $65.89.
Trade approach: A movement as big as -24.76% is a significantly bearish indicator, so this trade is designed to be profitable if NSP maintains its current direction and does not revert back to pricing on the bullish side of $67.02 on 17-Apr-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 INSPERITY closes at or below $67.60 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 51.39% 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.