Big Loser Alert: Trading today’s -7.7% move in TUSIMPLE HOLDINGS INC. CLASS A COMMON STOCK $TSP

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for TUSIMPLE HOLDINGS INC. CLASS A COMMON STOCK (TSP) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TSP was recently trading at $44.23 and has an implied volatility of 74.79% for this period. Based on an analysis of the options available for TSP expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $34.95-$44.23 at expiration. In this scenario, the average linear return for the trade would be 46.48%.

Big -7.70% Change: After closing the last trading session at $47.92, TUSIMPLE HOLDINGS INC. CLASS A COMMON STOCK opened today at $47.92 and has reached a low of $43.84.

Trade approach: A movement as big as -7.70% is a significantly bearish indicator, so this trade is designed to be profitable if TSP maintains its current direction and does not revert back to pricing on the bullish side of $44.23 on 16-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 TUSIMPLE HOLDINGS INC. CLASS A COMMON STOCK closes at or below $45.30 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 54.03% 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.