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Quantchabot has detected a promising Bear Put Spread trade opportunity for ALIGN TECHNOLOGY (ALGN) for the 22-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ALGN was recently trading at $580.11 and has an implied volatility of 39.12% for this period. Based on an analysis of the options available for ALGN expiring on 22-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $544.88-$580.12 at expiration. In this scenario, the average linear return for the trade would be 67.72%.
Big -7.54% Change: After closing the last trading session at $627.43, ALIGN TECHNOLOGY opened today at $608.61 and has reached a low of $572.51.
Trade approach: A movement as big as -7.54% is a significantly bearish indicator, so this trade is designed to be profitable if ALGN maintains its current direction and does not revert back to pricing on the bullish side of $580.11 on 22-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 ALIGN TECHNOLOGY closes at or below $581.10 on 22-Oct-2021. Based on our risk-neutral analysis, there is a 51.08% 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.