Quantchabot has detected a promising Bear Call Spread trade opportunity for ORMAT TECHNOLOGIES (ORA) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ORA was recently trading at $68.80 and has an implied volatility of 40.06% for this period. Based on an analysis of the options available for ORA expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $62.17-$68.85 at expiration. In this scenario, the average linear return for the trade would be 45.35%.
Big -8.22% Change: After closing the last trading session at $74.96, ORMAT TECHNOLOGIES opened today at $70.81 and has reached a low of $68.52.
Trade approach: A movement as big as -8.22% is a significantly bearish indicator, so this trade is designed to be profitable if ORA maintains its current direction and does not revert back to pricing on the bullish side of $68.80 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 ORMAT TECHNOLOGIES closes at or below $68.95 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 50.58% 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.