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Quantchabot has detected a promising Covered Put trade opportunity for LIFESTANCE HEALTH GROUP INC. COMMON STO (LFST) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LFST was recently trading at $8.82 and has an implied volatility of 105.07% for this period. Based on an analysis of the options available for LFST expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $6.33-$8.82 at expiration. In this scenario, the average linear return for the trade would be 24.22%.
Big -11.09% Change: After closing the last trading session at $9.92, LIFESTANCE HEALTH GROUP INC. COMMON STO opened today at $9.87 and has reached a low of $8.55.
Trade approach: A movement as big as -11.09% is a significantly bearish indicator, so this trade is designed to be profitable if LFST maintains its current direction and does not revert back to pricing on the bullish side of $8.82 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 LIFESTANCE HEALTH GROUP INC. COMMON STO closes at or below $8.91 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 51.22% 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.