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Quantchabot has detected a promising Bear Call Spread trade opportunity for EPR PROPERTIES (EPR) for the 16-Oct-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EPR was recently trading at $22.97 and has an implied volatility of 72.02% for this period. Based on an analysis of the options available for EPR expiring on 16-Oct-2020, there is a 34.15% likelihood that the underlying will close within the analyzed range of $21.44-$22.97 at expiration. In this scenario, the average linear return for the trade would be 38.10%.
Big -7.15% Change: After closing the last trading session at $24.74, EPR PROPERTIES opened today at $23.81 and has reached a low of $22.75.
Trade approach: A movement as big as -7.15% is a significantly bearish indicator, so this trade is designed to be profitable if EPR maintains its current direction and does not revert back to pricing on the bullish side of $22.97 on 16-Oct-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 EPR PROPERTIES closes at or below $23.25 on 16-Oct-2020. Based on our risk-neutral analysis, there is a 56.95% 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.