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Quantchabot has detected a promising Covered Put trade opportunity for WORKHORSE GROUP INC. COMMON STOCK (WKHS) for the 30-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
WKHS was recently trading at $15.63 and has an implied volatility of 156.28% for this period. Based on an analysis of the options available for WKHS expiring on 30-Jul-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $8.75-$15.63 at expiration. In this scenario, the average linear return for the trade would be 656.00%.
Big -7.51% Change: After closing the last trading session at $16.90, WORKHORSE GROUP INC. COMMON STOCK opened today at $16.59 and has reached a low of $15.01.
Trade approach: A movement as big as -7.51% is a significantly bearish indicator, so this trade is designed to be profitable if WKHS maintains its current direction and does not revert back to pricing on the bullish side of $15.63 on 30-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 WORKHORSE GROUP INC. COMMON STOCK closes at or below $23.32 on 30-Jul-2021. Based on our risk-neutral analysis, there is a 75.49% 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.