Big Loser Alert: Trading today’s -7.7% move in FUELCELL ENERGY $FCEL

Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Call Spread trade opportunity for FUELCELL ENERGY (FCEL) for the 19-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FCEL was recently trading at $21.97 and has an implied volatility of 118.80% for this period. Based on an analysis of the options available for FCEL expiring on 19-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $20.01-$21.97 at expiration. In this scenario, the average linear return for the trade would be 51.52%.

Big -7.74% Change: After closing the last trading session at $23.81, FUELCELL ENERGY opened today at $22.75 and has reached a low of $21.50.

Trade approach: A movement as big as -7.74% is a significantly bearish indicator, so this trade is designed to be profitable if FCEL maintains its current direction and does not revert back to pricing on the bullish side of $21.97 on 19-Feb-2021. 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 FUELCELL ENERGY closes at or below $22.34 on 19-Feb-2021. Based on our risk-neutral analysis, there is a 57.13% 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.