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Quantchabot has detected a promising Bear Call Spread trade opportunity for AMN HEALTHCARE SERVICES (AMN) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AMN was recently trading at $105.78 and has an implied volatility of 87.88% for this period. Based on an analysis of the options available for AMN expiring on 15-Oct-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $100.43-$105.78 at expiration. In this scenario, the average linear return for the trade would be 10.44%.
Big -8.67% Change: After closing the last trading session at $115.82, AMN HEALTHCARE SERVICES opened today at $116.06 and has reached a low of $105.75.
Trade approach: A movement as big as -8.67% is a significantly bearish indicator, so this trade is designed to be profitable if AMN maintains its current direction and does not revert back to pricing on the bullish side of $105.78 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 AMN HEALTHCARE SERVICES closes at or below $106.00 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 51.60% 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.