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Quantchabot has detected a promising Bear Put Spread trade opportunity for HERC HOLDINGS INC (HRI) for the 18-Jun-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
HRI was recently trading at $99.92 and has an implied volatility of 50.65% for this period. Based on an analysis of the options available for HRI expiring on 18-Jun-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $86.35-$99.93 at expiration. In this scenario, the average linear return for the trade would be 47.40%.
Big -7.49% Change: After closing the last trading session at $108.01, HERC HOLDINGS INC opened today at $105.06 and has reached a low of $99.35.
Trade approach: A movement as big as -7.49% is a significantly bearish indicator, so this trade is designed to be profitable if HRI maintains its current direction and does not revert back to pricing on the bullish side of $99.92 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 HERC HOLDINGS INC closes at or below $100.50 on 18-Jun-2021. Based on our risk-neutral analysis, there is a 51.56% 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.