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Quantchabot has detected a promising Short Risk Reversal trade opportunity for 1LIFE HEALTHCARE INC. (ONEM) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ONEM was recently trading at $12.04 and has an implied volatility of 94.14% for this period. Based on an analysis of the options available for ONEM expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $8.98-$12.04 at expiration. In this scenario, the average linear return for the trade would be 45.28%.
Big -9.13% Change: After closing the last trading session at $13.25, 1LIFE HEALTHCARE INC. opened today at $13.01 and has reached a low of $11.94.
Trade approach: A movement as big as -9.13% is a significantly bearish indicator, so this trade is designed to be profitable if ONEM maintains its current direction and does not revert back to pricing on the bullish side of $12.04 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 1LIFE HEALTHCARE INC. closes at or below $13.45 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 64.74% 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.