Big Loser Alert: Trading today’s -11.2% move in NETAPP $NTAP

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Quantchabot has detected a promising Bear Call Spread trade opportunity for NETAPP (NTAP) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NTAP was recently trading at $54.01 and has an implied volatility of 31.15% for this period. Based on an analysis of the options available for NTAP expiring on 17-Apr-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $46.94-$53.69 at expiration. In this scenario, the average linear return for the trade would be 62.65%.

Big -11.20% Change: After closing the last trading session at $60.82, NETAPP opened today at $53.48 and has reached a low of $53.20.

Trade approach: A movement as big as -11.20% is a significantly bearish indicator, so this trade is designed to be profitable if NTAP maintains its current direction and does not revert back to pricing on the bullish side of $54.01 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 NETAPP closes at or below $54.54 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 54.66% 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.