Big Gainer Alert: Trading today’s 8.4% move in HYDROFARM HOLDINGS GROUP INC. COMMON STOCK $HYFM

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Quantchabot has detected a promising Bull Put Spread trade opportunity for HYDROFARM HOLDINGS GROUP INC. COMMON STOCK (HYFM) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

HYFM was recently trading at $58.77 and has an implied volatility of 73.95% for this period. Based on an analysis of the options available for HYFM expiring on 16-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $58.77-$65.72 at expiration. In this scenario, the average linear return for the trade would be 51.87%.

Big 8.37% Change: After closing the last trading session at $54.23, HYDROFARM HOLDINGS GROUP INC. COMMON STOCK opened today at $55.32 and has reached a high of $58.77.

Trade approach: A movement as big as 8.37% is a significantly bullish indicator, so this trade is designed to be profitable if HYFM maintains its current direction and does not revert back to pricing on the bearish side of $58.77 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 bullish strategy, the trade would be profitable if HYDROFARM HOLDINGS GROUP INC. COMMON STOCK closes at or above $58.20 on 16-Apr-2021. Based on our risk-neutral analysis, there is a 53.49% 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.