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Quantchabot has detected a promising Bear Call Spread trade opportunity for ON HOLDING AG (ONON) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ONON was recently trading at $26.95 and has an implied volatility of 71.49% for this period. Based on an analysis of the options available for ONON expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $21.57-$26.95 at expiration. In this scenario, the average linear return for the trade would be 56.55%.
Big -8.51% Change: After closing the last trading session at $29.45, ON HOLDING AG opened today at $29.25 and has reached a low of $26.90.
Trade approach: A movement as big as -8.51% is a significantly bearish indicator, so this trade is designed to be profitable if ONON maintains its current direction and does not revert back to pricing on the bullish side of $26.95 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 ON HOLDING AG closes at or below $27.05 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 50.69% 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.