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Quantchabot has detected a promising Bear Put Spread trade opportunity for BRIGHT HORIZONS FAMILY SOLUTIO (BFAM) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BFAM was recently trading at $99.39 and has an implied volatility of 38.09% for this period. Based on an analysis of the options available for BFAM expiring on 17-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $87.04-$99.45 at expiration. In this scenario, the average linear return for the trade would be 19.53%.
Big -8.90% Change: After closing the last trading session at $109.10, BRIGHT HORIZONS FAMILY SOLUTIO opened today at $105.82 and has reached a low of $97.38.
Trade approach: A movement as big as -8.90% is a significantly bearish indicator, so this trade is designed to be profitable if BFAM maintains its current direction and does not revert back to pricing on the bullish side of $99.39 on 17-Jun-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 BRIGHT HORIZONS FAMILY SOLUTIO closes at or below $99.80 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 51.06% 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.