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Quantchabot has detected a promising Short Risk Reversal trade opportunity for BALLARD POWER SYSTEMS (BLDP) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BLDP was recently trading at $16.34 and has an implied volatility of 63.20% for this period. Based on an analysis of the options available for BLDP expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $13.07-$16.34 at expiration. In this scenario, the average linear return for the trade would be 49.99%.
Big -19.37% Change: After closing the last trading session at $20.26, BALLARD POWER SYSTEMS opened today at $17.07 and has reached a low of $16.13.
Trade approach: A movement as big as -19.37% is a significantly bearish indicator, so this trade is designed to be profitable if BLDP maintains its current direction and does not revert back to pricing on the bullish side of $16.34 on 18-Jun-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 BALLARD POWER SYSTEMS closes at or below $16.60 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 52.86% 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.