Big Gainer Alert: Trading today’s 8.4% move in PLUG POWER $PLUG

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Quantchabot has detected a promising Bull Put Spread trade opportunity for PLUG POWER (PLUG) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PLUG was recently trading at $43.55 and has an implied volatility of 71.04% for this period. Based on an analysis of the options available for PLUG expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $43.56-$59.63 at expiration. In this scenario, the average linear return for the trade would be 109.36%.

Big 8.39% Change: After closing the last trading session at $40.18, PLUG POWER opened today at $40.28 and has reached a high of $43.95.

Trade approach: A movement as big as 8.39% is a significantly bullish indicator, so this trade is designed to be profitable if PLUG maintains its current direction and does not revert back to pricing on the bearish side of $43.55 on 21-Jan-2022. 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 PLUG POWER closes at or above $43.10 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 51.34% 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.