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Quantchabot has detected a promising Bear Call Spread trade opportunity for LUMINAR TECHNOLOGIES INC (LAZR) for the 30-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LAZR was recently trading at $23.69 and has an implied volatility of 102.40% for this period. Based on an analysis of the options available for LAZR expiring on 30-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $21.49-$23.69 at expiration. In this scenario, the average linear return for the trade would be 56.36%.
Big -7.13% Change: After closing the last trading session at $25.51, LUMINAR TECHNOLOGIES INC opened today at $24.73 and has reached a low of $23.11.
Trade approach: A movement as big as -7.13% is a significantly bearish indicator, so this trade is designed to be profitable if LAZR maintains its current direction and does not revert back to pricing on the bullish side of $23.69 on 30-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 LUMINAR TECHNOLOGIES INC closes at or below $23.80 on 30-Apr-2021. Based on our risk-neutral analysis, there is a 51.89% 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.