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Quantchabot has detected a promising Bear Call Spread trade opportunity for PAR TECHNOLOGY (PAR) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PAR was recently trading at $57.33 and has an implied volatility of 54.29% for this period. Based on an analysis of the options available for PAR expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $48.91-$57.33 at expiration. In this scenario, the average linear return for the trade would be 39.69%.
Big -16.14% Change: After closing the last trading session at $68.36, PAR TECHNOLOGY opened today at $61.00 and has reached a low of $55.10.
Trade approach: A movement as big as -16.14% is a significantly bearish indicator, so this trade is designed to be profitable if PAR maintains its current direction and does not revert back to pricing on the bullish side of $57.33 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 PAR TECHNOLOGY closes at or below $58.10 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 53.33% 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.