Big Loser Alert: Trading today’s -7.6% move in QUANTUMSCAPE CORP $QS

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Quantchabot has detected a promising Bear Put Spread trade opportunity for QUANTUMSCAPE CORP (QS) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

QS was recently trading at $32.58 and has an implied volatility of 105.77% for this period. Based on an analysis of the options available for QS expiring on 7-May-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $29.42-$32.58 at expiration. In this scenario, the average linear return for the trade would be 56.75%.

Big -7.60% Change: After closing the last trading session at $35.26, QUANTUMSCAPE CORP opened today at $34.61 and has reached a low of $32.12.

Trade approach: A movement as big as -7.60% is a significantly bearish indicator, so this trade is designed to be profitable if QS maintains its current direction and does not revert back to pricing on the bullish side of $32.58 on 7-May-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 QUANTUMSCAPE CORP closes at or below $32.76 on 7-May-2021. Based on our risk-neutral analysis, there is a 52.15% 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.

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