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Quantchabot has detected a promising Bear Put Spread trade opportunity for ALBEMARLE (ALB) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ALB was recently trading at $143.90 and has an implied volatility of 52.79% for this period. Based on an analysis of the options available for ALB expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $116.75-$143.92 at expiration. In this scenario, the average linear return for the trade would be 44.30%.
Big -8.62% Change: After closing the last trading session at $157.47, ALBEMARLE opened today at $150.48 and has reached a low of $141.30.
Trade approach: A movement as big as -8.62% is a significantly bearish indicator, so this trade is designed to be profitable if ALB maintains its current direction and does not revert back to pricing on the bullish side of $143.90 on 16-Apr-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 ALBEMARLE closes at or below $144.80 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 51.16% 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.