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Quantchabot has detected a promising Bear Call Spread trade opportunity for AMEDISYS (AMED) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMED was recently trading at $172.46 and has an implied volatility of 37.09% for this period. Based on an analysis of the options available for AMED expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $154.98-$172.47 at expiration. In this scenario, the average linear return for the trade would be 72.26%.
52 week low: AMEDISYS recently reached a new 52-week low at $166.60. AMED had traded in the range $174.05-$325.12 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if AMED maintains its current direction and does not revert back to pricing on the bullish side of $172.46 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 AMEDISYS closes at or below $174.30 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 53.93% 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.