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Quantchabot has detected a promising Bear Call Spread trade opportunity for RESMED (RMD) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
RMD was recently trading at $191.98 and has an implied volatility of 24.36% for this period. Based on an analysis of the options available for RMD expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $171.31-$191.63 at expiration. In this scenario, the average linear return for the trade would be 49.53%.
Big -7.66% Change: After closing the last trading session at $207.91, RESMED opened today at $198.00 and has reached a low of $191.11.
Trade approach: A movement as big as -7.66% is a significantly bearish indicator, so this trade is designed to be profitable if RMD maintains its current direction and does not revert back to pricing on the bullish side of $191.98 on 16-Jul-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 RESMED closes at or below $192.35 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 51.33% 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.