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Quantchabot has detected a promising Bear Call Spread trade opportunity for PLUG POWER (PLUG) for the 7-May-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PLUG was recently trading at $24.21 and has an implied volatility of 118.63% for this period. Based on an analysis of the options available for PLUG expiring on 7-May-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $21.59-$24.21 at expiration. In this scenario, the average linear return for the trade would be 62.59%.
Big -9.09% Change: After closing the last trading session at $26.63, PLUG POWER opened today at $24.86 and has reached a low of $24.15.
Trade approach: A movement as big as -9.09% is a significantly bearish indicator, so this trade is designed to be profitable if PLUG maintains its current direction and does not revert back to pricing on the bullish side of $24.21 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 PLUG POWER closes at or below $24.39 on 7-May-2021. Based on our risk-neutral analysis, there is a 52.58% 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.