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Quantchabot has detected a promising Covered Put trade opportunity for SHENANDOAH TELECOMMUNICAT (SHEN) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
SHEN was recently trading at $17.26 and has an implied volatility of 70.82% for this period. Based on an analysis of the options available for SHEN expiring on 15-Jul-2022, there is a 34.16% likelihood that the underlying will close within the analyzed range of $12.54-$17.27 at expiration. In this scenario, the average linear return for the trade would be 20.57%.
Big -14.55% Change: After closing the last trading session at $20.20, SHENANDOAH TELECOMMUNICAT opened today at $19.17 and has reached a low of $17.06.
Trade approach: A movement as big as -14.55% is a significantly bearish indicator, so this trade is designed to be profitable if SHEN maintains its current direction and does not revert back to pricing on the bullish side of $17.26 on 15-Jul-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 SHENANDOAH TELECOMMUNICAT closes at or below $17.33 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.41% 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.