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Quantchabot has detected a promising Bear Call Spread trade opportunity for GENERAC HOLDINGS (GNRC) for the 17-Jun-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
GNRC was recently trading at $241.69 and has an implied volatility of 57.08% for this period. Based on an analysis of the options available for GNRC expiring on 17-Jun-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $198.95-$241.83 at expiration. In this scenario, the average linear return for the trade would be 10.15%.
Big -7.23% Change: After closing the last trading session at $260.52, GENERAC HOLDINGS opened today at $257.71 and has reached a low of $237.07.
Trade approach: A movement as big as -7.23% is a significantly bearish indicator, so this trade is designed to be profitable if GNRC maintains its current direction and does not revert back to pricing on the bullish side of $241.69 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 GENERAC HOLDINGS closes at or below $242.50 on 17-Jun-2022. Based on our risk-neutral analysis, there is a 50.57% 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.