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Quantchabot has detected a promising Covered Put trade opportunity for GLOBALSTAR INC. (GSAT) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GSAT was recently trading at $2.26 and has an implied volatility of 134.52% for this period. Based on an analysis of the options available for GSAT expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $1.51-$2.26 at expiration. In this scenario, the average linear return for the trade would be 69.57%.
Big -13.08% Change: After closing the last trading session at $2.60, GLOBALSTAR INC. opened today at $2.28 and has reached a low of $2.17.
Trade approach: A movement as big as -13.08% is a significantly bearish indicator, so this trade is designed to be profitable if GSAT maintains its current direction and does not revert back to pricing on the bullish side of $2.26 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 GLOBALSTAR INC. closes at or below $3.16 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 79.87% 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.