Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for SLEEP NUMBER CORP (SNBR) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SNBR was recently trading at $130.90 and has an implied volatility of 61.20% for this period. Based on an analysis of the options available for SNBR expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $117.58-$130.90 at expiration. In this scenario, the average linear return for the trade would be 44.50%.
Big -7.82% Change: After closing the last trading session at $142.00, SLEEP NUMBER CORP opened today at $143.43 and has reached a low of $130.57.
Trade approach: A movement as big as -7.82% is a significantly bearish indicator, so this trade is designed to be profitable if SNBR maintains its current direction and does not revert back to pricing on the bullish side of $130.90 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 SLEEP NUMBER CORP closes at or below $133.10 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 56.16% 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.