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Quantchabot has detected a promising Covered Put trade opportunity for NAM TAI PROPERTY INC (NTP) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
NTP was recently trading at $21.56 and has an implied volatility of 105.51% for this period. Based on an analysis of the options available for NTP expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $14.14-$21.56 at expiration. In this scenario, the average linear return for the trade would be 41.86%.
Big -11.93% Change: After closing the last trading session at $24.48, NAM TAI PROPERTY INC opened today at $24.26 and has reached a low of $20.77.
Trade approach: A movement as big as -11.93% is a significantly bearish indicator, so this trade is designed to be profitable if NTP maintains its current direction and does not revert back to pricing on the bullish side of $21.56 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 bearish strategy, the trade would be profitable if NAM TAI PROPERTY INC closes at or below $23.25 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 57.09% 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.