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Quantchabot has detected a promising Bear Call Spread trade opportunity for INSULET (PODD) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
PODD was recently trading at $198.94 and has an implied volatility of 60.67% for this period. Based on an analysis of the options available for PODD expiring on 17-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $161.75-$199.05 at expiration. In this scenario, the average linear return for the trade would be 19.72%.
Big -12.33% Change: After closing the last trading session at $226.91, INSULET opened today at $223.44 and has reached a low of $194.78.
Trade approach: A movement as big as -12.33% is a significantly bearish indicator, so this trade is designed to be profitable if PODD maintains its current direction and does not revert back to pricing on the bullish side of $198.94 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 INSULET closes at or below $199.10 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 50.04% 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.