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Quantchabot has detected a promising Bear Call Spread trade opportunity for STAAR SURGICAL (STAA) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
STAA was recently trading at $136.59 and has an implied volatility of 50.90% for this period. Based on an analysis of the options available for STAA expiring on 15-Oct-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $117.41-$136.61 at expiration. In this scenario, the average linear return for the trade would be 51.08%.
Big -7.17% Change: After closing the last trading session at $147.14, STAAR SURGICAL opened today at $147.51 and has reached a low of $136.22.
Trade approach: A movement as big as -7.17% is a significantly bearish indicator, so this trade is designed to be profitable if STAA maintains its current direction and does not revert back to pricing on the bullish side of $136.59 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 STAAR SURGICAL closes at or below $137.60 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 51.91% 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.