Quantcha now offering unlimited commission-free options trading.
Quantchabot has detected a promising Bear Call Spread trade opportunity for GROWGENERATION CORP. COMMON STOCK (GRWG) for the 5-Nov-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GRWG was recently trading at $21.26 and has an implied volatility of 65.45% for this period. Based on an analysis of the options available for GRWG expiring on 5-Nov-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $18.02-$21.26 at expiration. In this scenario, the average linear return for the trade would be 52.31%.
Big -10.48% Change: After closing the last trading session at $23.75, GROWGENERATION CORP. COMMON STOCK opened today at $22.25 and has reached a low of $21.06.
Trade approach: A movement as big as -10.48% is a significantly bearish indicator, so this trade is designed to be profitable if GRWG maintains its current direction and does not revert back to pricing on the bullish side of $21.26 on 5-Nov-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 GROWGENERATION CORP. COMMON STOCK closes at or below $21.35 on 5-Nov-2021. Based on our risk-neutral analysis, there is a 51.00% 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.