Quantchabot has detected a promising Covered Put trade opportunity for EXPRESS (EXPR) for the 26-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
EXPR was recently trading at $1.74 and has an implied volatility of 124.81% for this period. Based on an analysis of the options available for EXPR expiring on 26-Aug-2022, there is a 34.21% likelihood that the underlying will close within the analyzed range of $1.25-$1.74 at expiration. In this scenario, the average linear return for the trade would be 10.91%.
52 week low: EXPRESS recently reached a new 52-week low at $1.63. EXPR had traded in the range $1.64-$7.71 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if EXPR maintains its current direction and does not revert back to pricing on the bullish side of $1.74 on 26-Aug-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 EXPRESS closes at or below $2.06 on 26-Aug-2022. Based on our risk-neutral analysis, there is a 69.40% 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.