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Quantchabot has detected a promising Bear Put Spread trade opportunity for INMODE LTD. ORDINARY SHARES (INMD) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
INMD was recently trading at $119.10 and has an implied volatility of 54.84% for this period. Based on an analysis of the options available for INMD expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $101.17-$119.11 at expiration. In this scenario, the average linear return for the trade would be 52.73%.
Big -12.51% Change: After closing the last trading session at $136.14, INMODE LTD. ORDINARY SHARES opened today at $137.62 and has reached a low of $115.48.
Trade approach: A movement as big as -12.51% is a significantly bearish indicator, so this trade is designed to be profitable if INMD maintains its current direction and does not revert back to pricing on the bullish side of $119.10 on 15-Oct-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 INMODE LTD. ORDINARY SHARES closes at or below $120.50 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 52.83% 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.