Big Loser Alert: Trading today’s -8.3% move in AGILON HEALTH INC $AGL

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Quantchabot has detected a promising Covered Put trade opportunity for AGILON HEALTH INC (AGL) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AGL was recently trading at $18.92 and has an implied volatility of 84.21% for this period. Based on an analysis of the options available for AGL expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $16.80-$18.92 at expiration. In this scenario, the average linear return for the trade would be 11.14%.

Big -8.29% Change: After closing the last trading session at $20.63, AGILON HEALTH INC opened today at $20.36 and has reached a low of $18.87.

Trade approach: A movement as big as -8.29% is a significantly bearish indicator, so this trade is designed to be profitable if AGL maintains its current direction and does not revert back to pricing on the bullish side of $18.92 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 AGILON HEALTH INC closes at or below $19.06 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 52.47% 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.