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Quantchabot has detected a promising Bear Put Spread trade opportunity for API GROUP CORP (APG) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
APG was recently trading at $20.25 and has an implied volatility of 33.41% for this period. Based on an analysis of the options available for APG expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.34-$20.25 at expiration. In this scenario, the average linear return for the trade would be 34.21%.
Big -7.62% Change: After closing the last trading session at $21.92, API GROUP CORP opened today at $21.24 and has reached a low of $20.12.
Trade approach: A movement as big as -7.62% is a significantly bearish indicator, so this trade is designed to be profitable if APG maintains its current direction and does not revert back to pricing on the bullish side of $20.25 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 API GROUP CORP closes at or below $20.65 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 57.77% 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.