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Quantchabot has detected a promising Covered Put trade opportunity for AGILON HEALTH INC (AGL) for the 20-May-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AGL was recently trading at $15.31 and has an implied volatility of 122.95% for this period. Based on an analysis of the options available for AGL expiring on 20-May-2022, there is a 34.33% likelihood that the underlying will close within the analyzed range of $12.41-$15.31 at expiration. In this scenario, the average linear return for the trade would be 18.54%.
Big -8.16% Change: After closing the last trading session at $16.67, AGILON HEALTH INC opened today at $17.02 and has reached a low of $15.01.
Trade approach: A movement as big as -8.16% is a significantly bearish indicator, so this trade is designed to be profitable if AGL maintains its current direction and does not revert back to pricing on the bullish side of $15.31 on 20-May-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 AGILON HEALTH INC closes at or below $15.33 on 20-May-2022. Based on our risk-neutral analysis, there is a 50.22% 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.