Big Gainer Alert: Trading today’s 8.9% move in GROWGENERATION CORP. COMMON STOCK $GRWG

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Quantchabot has detected a promising Bull Put 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 $22.78 and has an implied volatility of 64.52% 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 $22.78-$26.72 at expiration. In this scenario, the average linear return for the trade would be 63.29%.

Big 8.88% Change: After closing the last trading session at $20.92, GROWGENERATION CORP. COMMON STOCK opened today at $20.93 and has reached a high of $22.98.

Trade approach: A movement as big as 8.88% is a significantly bullish indicator, so this trade is designed to be profitable if GRWG maintains its current direction and does not revert back to pricing on the bearish side of $22.78 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 bullish strategy, the trade would be profitable if GROWGENERATION CORP. COMMON STOCK closes at or above $22.69 on 5-Nov-2021. Based on our risk-neutral analysis, there is a 50.97% 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.