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Quantchabot has detected a promising Bear Put Spread trade opportunity for JOBY AVIATION INC (JOBY) for the 17-Sep-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
JOBY was recently trading at $8.01 and has an implied volatility of 157.17% for this period. Based on an analysis of the options available for JOBY expiring on 17-Sep-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $7.07-$8.01 at expiration. In this scenario, the average linear return for the trade would be 23.84%.
52 week low: JOBY AVIATION INC recently reached a new 52-week low at $7.83. JOBY had traded in the range $8.25-$17.00 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 JOBY maintains its current direction and does not revert back to pricing on the bullish side of $8.01 on 17-Sep-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 JOBY AVIATION INC closes at or below $8.10 on 17-Sep-2021. Based on our risk-neutral analysis, there is a 53.77% 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.