Big Loser Alert: Trading today’s -13.5% move in BRP GROUP INC. CLASS A COMMON STOCK $BRP

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Quantchabot has detected a promising Bear Put Spread trade opportunity for BRP GROUP INC. CLASS A COMMON STOCK (BRP) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

BRP was recently trading at $32.54 and has an implied volatility of 54.46% for this period. Based on an analysis of the options available for BRP expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $27.74-$32.54 at expiration. In this scenario, the average linear return for the trade would be 25.16%.

Big -13.55% Change: After closing the last trading session at $37.64, BRP GROUP INC. CLASS A COMMON STOCK opened today at $35.82 and has reached a low of $32.54.

Trade approach: A movement as big as -13.55% is a significantly bearish indicator, so this trade is designed to be profitable if BRP maintains its current direction and does not revert back to pricing on the bullish side of $32.54 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 BRP GROUP INC. CLASS A COMMON STOCK closes at or below $32.60 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 50.44% 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.