52-Week Low Alert: Trading today’s movement in OLAPLEX HOLDINGS INC. $OLPX

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Quantchabot has detected a promising Bear Put Spread trade opportunity for OLAPLEX HOLDINGS INC. (OLPX) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

OLPX was recently trading at $22.84 and has an implied volatility of 66.19% for this period. Based on an analysis of the options available for OLPX expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $20.67-$22.84 at expiration. In this scenario, the average linear return for the trade would be 33.66%.

52 week low: OLAPLEX HOLDINGS INC. recently reached a new 52-week low at $22.54. OLPX had traded in the range $22.84-$30.41 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if OLPX maintains its current direction and does not revert back to pricing on the bullish side of $22.84 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 OLAPLEX HOLDINGS INC. closes at or below $23.15 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 55.48% 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.