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Quantchabot has detected a promising Covered Put trade opportunity for 3D SYSTEMS (DDD) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
DDD was recently trading at $29.22 and has an implied volatility of 71.53% for this period. Based on an analysis of the options available for DDD expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $20.05-$29.23 at expiration. In this scenario, the average linear return for the trade would be 730.00%.
Big -13.75% Change: After closing the last trading session at $33.88, 3D SYSTEMS opened today at $31.40 and has reached a low of $27.78.
Trade approach: A movement as big as -13.75% is a significantly bearish indicator, so this trade is designed to be profitable if DDD maintains its current direction and does not revert back to pricing on the bullish side of $29.22 on 18-Feb-2022. 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 3D SYSTEMS closes at or below $43.73 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 85.74% 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.